#Corporate Issues

Highlights on the Fourth Week of August, 2018. Mining and Exploration News in Mexico

/ Gambusino Prospector / Leave a comment

naranjillo_gto 1 - copia

By Jorge Cirett

During the 34th week of the year (August 20th to August 26th, 2018), at least 17 press releases were announced by companies working in Mexico. Aztec Minerals, Discovery Metals, and SilverCrest Metals released advances in exploration. Grupo Mexico and Santacruz Silver Mining released its Q2 2018 results. SilverCrest Metals, Silver Bull, Avino Silver and Prize Mining reported news on financing. Azure Minerals reported advances on the PEA and new drilling of one of its projects. ON MEXICO ISSUES, The Mexican Core Shack now counts with displays from three properties in Chihuahua, two in Durango and two in Estado de Mexico. ON EXPLORATION, In Sonora, Aztec Minerals released results from surface sampling along drill roads on its Cervantes project. In Coahuila, Discovery Metals released results from underground sampling at its Puerto Rico project.   ON MINING Grupo Mexico and Santacruz Silver released its Q2 2018 reports. Grupo Mexico is to re-open its San Martin mine in Zacatecas.  ON FINANCING, Silver Bull and Prize Mining closed final tranches of financing for gross proceeds of US$3.79 M and $7.62 M respectively. ON RESOURCES AND DEVELOPMENT, Azure Minerals is advancing the PEA on its Oposura property in Sonora, and announcing a new drilling campaign. SilverCrest released more drilling results from its Las Chispas project in Sonora. ON DEALS AND CORPORATE ISSUES, Alio Gold announced several changes in senior management, as well as at its corporate head office in Vancouver, related to the recent focus on its operating mines.

ON MEXICO ISSUES

ON EXPLORATION

  • Aztec Minerals Corp. released surface sampling results from the California prospect within its Cervantes project in Sonora. The rock chip channel samples were collected along drill roads, returning 75 m @ 0.11 g/t Au; 222 m @ 0.47 g/t Au; 84 m @ 0.40 g/t Au; 183 m @ 0.32 g/t Au; 81 m @ 0.53 g/t Au; 33 m @ 0.26 g/t Au; 111 m @ 0.02 g/t Au. Aztec’s CAD$182 K phase 2 exploration program “of geological mapping, rock, soil and sediment sampling and airborne magnetic and radiometric surveys is focused on better defining additional drill targets” on the 3,649 hectares property. Soil surveys highlight strong gold anomalies at the California north, Purisima East, Purisima West and Jacob soil grids, with individual samples returning up to 3.3 g/t Au. The Cervantes property is held under an option to purchase agreement with Kootenay Silver Inc.
  • Discovery Metals Corp. reported the second batch of underground channel sampling results from the San Jose mine at its Puerto Rico project in Coahuila. “San Jose contains approximately 630m of underground drifts and stopes over four levels (from bottom to top: the Chuyon, Haulage, Rope and Upper levels) that span an approximate vertical extent of 50m and cover a horizontal extent of approximately 80m by 80m. All four levels host strongly mineralized mantos, chimneys and faults. Channel samples were collected at 3-5m intervals along both sides of the entire length of the developed workings”. Individual samples are as high as 1.2 m @ 10 g/t Ag, 46.2% Zn, 0.2% Pb, 0.2% Cu; 0.7 m @ 154 g/t Ag, 38.2% Zn, 0.6% Pb, 0.1% Cu; 1.0 m @ 18 g/t Ag, 30.2% Zn, 0.1% Pb, 2.6% Cu; 1.0 m @ 445 g/t Ag, 3.5% Zn, 26.3% Pb, 0.6% Cu.discoverymetals_nr-2018-08-2311

ON MINING

  • Santacruz Silver Mining Ltd. reported operating results from the Veta Grande project in Zacatecas and the Rosario project in San Luis Potosi, for the second quarter 2018. At Veta Grande, 52 K tonnes @ 70 g/t Ag, 0.17 g/t Au, 1.14% Zn, 0.41% Pb (161 g/t AgEq) were processed, with a 45% Ag recovery, to produce 36.7 K Oz Ag, 59 Oz Au, 111 tonnes Pb, 164 tonnes Zn. At Rosario, 15.4 K tonnes @ 44 g/t Ag, 0.26 g/t Au, 2.54% Zn, 0.23% Pb (212 g/t AgEq) were processed, with 89% Ag recovery, to produce 19.4 K Oz Ag, 84 Oz Au, 31 tonnes Pb, 344 tonnes Zn.
  • Grupo México is to re–open its San Martin mine in Zacatecas, with an investment of US$77 M. The mine was closed eleven years ago due to a labor dispute with the Sindicato Nacional de Trabajadores Mineros, led by Napoleon Gomez Urrutia. The mine workers have now changed to the Sindicato Nacional de Trabajadores de la Exploración, Explotación y Beneficio en Minas de la República Mexicana, ending the closure by strike of the mine. The mine is to have a 32 years life span, creating directly 600 jobs and indirectly 3,000 more.
  • Grupo México reported its second quarter 2018 results. During the period sales increased 19%, while the EBITDA rose to US$1,316 M, and capital investments rose to US$434 M.

ON FINANCING

  • SilverCrest Metals Inc. has been approved to list its common shares on the New York Stock Exchange (Las Chispas, Sonora).
  • Silver Bull Resources Inc. completed the second and final tranche of its previously announced private placement, for aggregate gross proceeds of USD$957.5 K. Under the first tranche of the private placement Silver Bull accrued USD$2.831 M (Sierra Mojada, Coahuila).
  • Avino Silver & Gold Mines Ltd- filed a shelf registration statement on Form F-3 with the Securities and Exchange Commission (SEC), that is to allow the company to raise up to US$25 M (Avino, Durango).
  • Prize Mining Corp. closed the third and final tranche of the recently announced non-brokered private placement, raising $500 K and taking the total aggregate of gross proceeds to $7.62 M (Manto Negro, Coahuila).

ON RESOURCES AND DEVELOPMENT

  • Azure Minerals Ltd. announced that the preliminary economic assessment (PEA) on its Oposura project in Sonora remains on track to be reported in the third quarter of 2018. The study envisions open pit and room and pillar underground extraction. The resource includes 2.1 Mt (tonnes) @5.3% Zn, 2.9% Pb, 17.2 g/t Ag in the indicated category and 0.8 Mt @ 4.3% Zn, 2.5% Pb, 16.5 g/t Ag in the inferred category.
  • SilverCrest Metals Inc. announced new drill results from the Granaditas vein and the new Granaditas Dos vein at its Las Chispas property in Sonora. These veins are approximately 40 m apart and may intersect to the southeast. Highlighted true width (TW) intercepts include 1.2 m @ 5.6 g/t Au, 15 g/t Ag; 1.3 m @ 4.2 g/t Au, 229 g/t Ag; 1.2 m @ 3.10 g/t Au, 4.0 g/t Ag in the Granaditas vein, 0.5 m @ 1.8 g/t Au, 149 g/t Ag; 0.4 m @ 2.4 g/t Au, 421 g/t Ag; 2.9 m @ 294 g/t Ag; 1.2 m @ 1.2 g/t Au, 162 g/t Ag in the Granaditas Dos vein and 0.9 m @ 1.0 g/t Au, 82 g/t Ag; 1.4 m @ 2.5 g/t Au, 799 g/t Ag in an unnamed vein. The high-grade footprint in the Granaditas Vein currently measures approximately 200 m long by 200 m high and is open in most directions. The high-grade footprint in the Granaditas Dos (2) Vein currently measures approximately 100 m long by 100 m high and is open in most directions.
  • Azure Minerals Ltd. recommenced drilling at its Oposura project in Sonora. This campaign is focused on infill drilling and more widely spaced resource extensional drilling.

ON DEALS AND CORPORATE ISSUES

  • Alio Gold Inc. announced changes related to the recent focus on its operating mines San Francisco in Sonora and Florida Canyon in Nevada, which include the previously announced temporary suspension of exploration and development at its Ana Paula project in Guerrero, and the here stated termination of the Vice-president of project development Project Manager and the Chief Executive Officer. “The Company has also taken steps to reduce costs at the Ana Paula project site in Mexico while maintaining a level of local employment and community engagement…..the Company has also implemented a number of changes at its corporate office in Vancouver which in total are expected to reduce the corporate overhead by approximately $1.2 million over the next 12 months.“
  • Defiance Silver Corp. renegotiated and extended the terms of its San Acacio Project option agreement. “The project vendor has agreed to postpone a substantial amount of the payments due in 2018 to September 27, 2020. As a result, Defiance will be making four quarterly payments of US$226,900 totaling US$907,600 in year one and four quarterly payments of US$250,000 totaling US$1,000,000 in year two with the final option payment due September 2020.”

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.

On the picture above, the silicified and alunite bearing ridge beyond the farming fields is interpreted as the water table interface in a shallow epithermal system, in Guanajuato. Picture by Jorge Cirett.

Highlights on the Second Week of July, 2018. Mining and Exploration News in Mexico

/ Gambusino Prospector / Leave a comment

211 - copia

By Jorge Cirett

During the 28th week of the year (July 9th to July 15th, 2018), at least 23 press releases were announced by companies working in Mexico. Three companies updated on exploration advances. one company announced a financing round while another tries to extend the period for exercise of warrants. Seven companies released Q2 production results and two others a PEA on its properties. Seven companies released advances on the development or exploration of their resource base, and finally one company announced the appointment of its Vice-president Exploration and one other company the optioning of a property to a third party, and returning another to the underlying owner. ON MEXICO ISSUES, No relevant news. ON EXPLORATION, In Sonora, Ridgestone Mining completed an IP survey on its Rebeico property. In Chihuahua Golden Goliath resumed exploration on its San Timoteo project, and in Veracruz Mexican Gold released rock chip sampling results from its Las Minas project.  ON MINING Torex Gold, Endeavour Silver, Great Panther, Capstone, Excellon, Premier Gold and Hecla released second quarter results on production. Sierra Metals released a PEA on a projected production increment at its Bolivar mine in Chihuahua.  ON FINANCING, Prize Mining closed the first tranche of a non-brokered private placement. Candente Gold applied to extend the expiration period of warrants issued on a previous financing. ON RESOURCES AND DEVELOPMENT, Santacruz Silver, SilverCrest, Avino Silver, Kootenay Silver and Golden Minerals released drilling or exploration results on their properties with resources. Orla Mining released a PEA on its Camino Rojo Property in Zacatecas. ON DEALS AND CORPORATE ISSUES, Discovery Metals announced the appointment of Gernot Wober as VP Exploration. Riverside Resources optioned its La Silla property (in Sinaloa) to Sinaloa Resources, and returned the Glor property (in Sonora) to underlying owner Argonaut Gold, after two unsuccessful drill campaigns by Centerra Gold.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Golden Goliath Resources Ltd. reported the commencement of its summer exploration program at its San Timoteo property in the Uruachic district of Chihuahua. San Timoteo hosts the longest mining tunnel in the district, with mapping and sampling having defined three ore shoots and a manto horizon within it. No exploration has been carried below the level of the tunnel, and the workings are interpreted to be above the boiling zone of an epithermal system, hence the possibility of potential bonanza grades down dip.
  • Mexican Gold Corp. released high grade sampling results from the Pueblo Nuevo area of its Las Minas projects in Veracruz. Multiple new vein occurrences have been discovered in the Pueblo Nuevo Valley structural corridor. The veins “show characteristics of mesothermal quartz veins”, generally 20 to cm in width, sub-vertical dips and no post mineral deformation. The dioritic host rock displays argillic alteration and sulfides up to one meter on each side of the veins. Chip sampling results include 0.43 m @ 7.87 g/t Au, 74 g/t Ag, 3.5% Zn; 0.30 m @ 6.14 g/t Au, 60 g/t Ag, 5.3% Zn; 0.50 m @ 19.18 g/t Au, 229 g/t Ag, 2.25% Zn; 0.3 m @ 4.33 g/t Au, 30 g/t Ag, 1.1% Zn; 0.15 m @ 16.17 g/t Au, 101 g/t Ag, 0.6% Cu, 14.6% Zn; 0.60 m @ 3.18 g/t Au, 17 g/t Ag, 3.5% Zn; 0.40 m @ 4.11 g/t Au, 22 g/t Ag; 0.45 m @ 19.41 g/t Au, 148 g/t Ag, 1.5% Cu, 0.8% Zn; 0.60 m @ 19.26 g/t Au, 70 g/t Ag, 2.3% Zn; 0.75 m @ 10.12 g/t Au, 30 g/t Ag.
  • Ridgestone Mining Inc. completed an induced polarization (IP) geophysical survey at its Rebeico Au-Cu project in Sonora. The survey comprised nine lines of IP, each 2 km long, for a total of 18 line kilometers spaced 200 m apart, covering an area of 1.6 by 2.0 km. Ridgestone has an option to acquire 100% interest in the project (subject to a 2% NSR) from YQ Gold de Mexico S. de R.L. (a Mexican corporation). The property covers 167 hectares, and includes the Alaska mine, which has old workings of up to 70 m of depth.

ON MINING

  • Torex Gold Resources Inc. released second quarter production results for 2018, period during which 80 K Oz Au were produced at its Limon-Guajes mine in Guerrero. Production has been ramping up, with 9 K tones per day (tpd) on April, 11 K tpd on May and 13 K tpd on June. The SART plant produced its first copper precipitate, with the operations team now taking the plant to full production. The updated technical report on El Limon-Guajes and Media Luna project is to be completed in late July/early August.
  • Sierra Metals Inc. announced the results of a preliminary economic assessment (PEA) on its Bolivar mine in Chihuahua, with the report being filed within 45 days. The PEA includes a net present value (NPV) of US$214 M at 8% discount rate, a return on investment (ROI) of 550%, on 3-4 years payback period and a net after-tax cash flow of US$303 M. The plant is to process 5 K tpd at recovery rate of 85% Cu to produce 252.5 M Lb Cu on 11 years of mine life on the existing mineral resource estimate. The longhole stoping method is to be used for mining.
  • Endeavour Silver Corp. reported production results for the second quarter 2018. At Guanaceví, in Durango, 71.3 K tonnes were produced @ 225 g/t Ag, 0.67 g/t Au, recovering 90.2% Ag, 92.7% Au to obtain 464.9 K Oz Ag, 1,423 Oz Au. At Bolañitos, in Guanajuato, 108.5 K tonnes were milled @ 91 g/t Ag, 1.82 g/t Au, recovering 78.3% Ag, 82.3% Au, to obtain 248.6 K Oz Ag, 5,222 Oz Au. At El Cubo, in Guanajuato, 134.5 K tonnes were milled @ 171 g/t Ag, 1.92 g/t Au, recovering 86.8% Ag, 84.6% Au, to obtain 642.4 K Oz Ag, 7,029 Oz Au. Consolidated production was 1,355.9 K Oz Ag, 13,674 Oz Au. The El Compas mine in Zacatecas is on track to commence commercial production by the end of July at the target capacity of 250 tpd.
  • Great Panther Silver Mines Ltd. reported production results for the second quarter 2018. At the Guanajuato Mine Complex, in Guanajuato, 77 K tonnes were processed @ 127 g/t Ag, 2.40 g/t Au, recovering 87.7% Ag, 88.2% Au to obtain 276.6 K Oz Ag, 5,240 Oz Au. At Topia, in Durango, 18.1 K tonnes were milled @ 371 g/t Ag, 0.69 g/t Au, recovering 93.9% Ag, 63.1% Au, to obtain 203.1 K Oz Ag, 253 Oz Au. Consolidated production of 95.2 K tonnes milled produced 479.8 K Oz Ag, 5,492 Oz Au, 480 tonnes Pb, 528 tonnes Zn.
  • Capstone Mining Corp. released production results for the second quarter of 2018, including figures from its Mexican operations. At Cozamin, in Zacatecas, 227.6 K tonnes were mined, 224.2 K tonnes milled (4,464 tpd) @ 1.66 % Cu, 1.04% Zn, 0.29% Pb, 45.3 g/t Ag. Recovery was 94.6% Cu, 66.4% Zn, 48.1% Pb, 77.5% Ag, to produce 13,581 tonnes of copper concentrate @ 25.9% Cu, 517 g/t Ag; 3,529 tonnes of zinc concentrate @ 47.5% Zn and 494 tonnes of lead concentrate @ 62.3% Pb, 1,717 g/t Ag.
  • Excellon Resources Inc. announced second quarter 2018 production results from its Platosa mine in Durango. Silver equivalent (AgEq) production increased 120% to 637.2 K Oz AgEq on Q2 2017 figures. 16.1 K tonnes were mined, 22.9 K tonnes milled @ 415 g/t Ag, 4.6% Pb, 6.7% Zn with recoveries of 89.6% Ag, 80.2% Pb, 82.2% Zn to produce 277.7 K Oz Ag, 1.85 M Lb Pb, 2.81 M Lb Zn, or 637.2 K Oz AgEq. Low-grade historical stockpiles and sump material with minimal associated mining cost continued to be processed. An AISC of less than $10 per Ag Oz was achieved.
  • Premier Gold Mines Ltd. released second quarter 2018 production results, including figures from its operations in Mexico. At Mercedes, in Sonora, 13,780 Oz Au, 44,366 Oz Ag were produced during the period. Production was impacted through the first half of the year owing to delays in the development of the Diluvio and Rey de Oro deposits. “Reinterpretation of the Diluvio ore shapes required changes to the stope designs. Mining in Rey de Oro was delayed by permitting requirements for the ventilation system”.
  • Hecla Mining Co. released preliminary results for the second quarter of 2018, including figures from its Mexican operations. At San Sebastian in Durango, 0.6 M Oz Ag, 3,872 Oz Au were produced in the period. The mill operated at an average of 415 tpd.

ON FINANCING

  • Prize Mining Corp. closed the first tranche of its non-brokered private placement for gross proceeds of $6.5 M. No finder’s fees were paid as part of this transaction. (Mercedes, Sonora).
  • Candente Gold Corp. has applied to extend the exercise period of 5 M outstanding share purchase warrants issued at a private placement in August 2016. “The original expiry date was August 12, 2018 and if the extension is approved, the new expiration date will be August 12, 2020”.

ON RESOURCES AND DEVELOPMENT

  • Sierra Metals Inc. released a new mineral reserve estimate on the new PEA on its Bolivar mine in Chihuahua. The Cu-Zn skarn (with Ag and Au credits). “Mineralization exhibits strong stratigraphic control and two stratigraphic horizons host the bulk of the mineralization: an upper calcic horizon, which predominantly hosts Zn-rich mineralization, and a lower dolomitic horizon, which predominantly hosts Cu-rich mineralization”. The indicated resources display 13.26 Mt @ 22.5 g/t Ag, 0.29 g/t Au, 1.04% Cu containing 9.6 M Oz Ag, 124 K Oz Au, 137.5 K tonnes Cu, and the inferred resources 8 M tonnes @ 22.4 g/t Ag, 0.42 g/t Au, 0.96% Cu containing 5.8 M Oz Ag, 109 Oz Au, 76.8 K tonnes Cu.
  • Santacruz Silver Mining Ltd. Reported initial phase I drill results from the Garcia and Armado veins on its Veta Grande project in Zacatecas. Ten drill holes totaling 3,323 m of core drilling have been completed, having received results on the first six holes. Some highlighted true width intervals: 1.0 m @ 0.05 g/t Au, 209 g/t Ag; 0.32 m @ 0.37 g/t Au, 312 g/t Ag; 4 m @ 0.06 g/t Au, 168 g/t Ag; 0.95 m @ 1.36 g/t Au, 235 g/t Ag, 7.5% Pb, 8.7% Zn, 0.2% Cu; 0.65 m @ 292 g/t Ag; 0.88 m @ 1.73 g/t Au, 34 g/t Ag.
  • SilverCrest Metals Inc. released further phase III drill results for the Las Chispas property in Sonora. Highlighted intervals on the Babicanora vein: 2.0 m @ 0.87 g/t Au, 269 g/t Ag; 2.5 m @ 6.04 g/t Au, 369 g/t Ag (including (0.8 m @ 14.95 g/t Au, 742 g/t Ag); 0.6 m @ 2.19 g/t Au, 63 g/t Ag. Highlighted intervals on the Babicanora footwall vein include: 5 m @ 54.59 g7t Au 6,535 g/t Ag (including 0.5 m @ 183.50 g/t Au, 21,858 g/t Ag); 2.3 m @ 4.07 g/t Au, 436 g/t Ag; 0.9 m @ 1.15 g/t Au, 151 g/t Ag. The sub parallel Babicanora FW vein high-grade footprint has now been traced for 250 m on strike.
  • Avino Silver Gold Mines Ltd. released drill results from the Chirumbo and Guadalupe areas of the Avino property in Durango. Avino vein highlighted core length intersects include 15.4 m @ 0.20 g/t Au, 129 g/t Ag, 0.64% Cu; 42.75 m @ 0.45 g/t Au, 46 g/t Ag, 0.44% Cu; 15.85 m @ 4.13 g/t Au, 20 g/t Ag, 0.07% Cu; 7.35 m @ 0.36 g/t Au, 47 g/t Ag, 0.33% Cu; 6.0 m @ 0.09 g/t Au, 202 g/t Ag, 0.64% Cu. Highlighted Guadalupe vein results include 0.60 m @ 1.38 g/t Au, 90 g/t Ag, 0.76% Cu; 1.50 m @ 4.79 g/t Au, 11 g/t Ag, 0.05% Cu; 3.75 m @ 0.32 g/t Au, 171 g/t Ag, 0.1% Cu; 1.60 m @ 0.23 g/t Au, 84 g/t Ag, 0.28% Cu; 5.20 m @ 0.07 g/t Au, 26 g/t Ag, 0.34% Cu; 3.90 m @ 0.33 g/t Au, 129 g/t Ag, 0.75% Cu. The Guadalupe vein has shown to extend along 800 m and to a depth of 250 m. Avino is planning a new drill program targeting the Aguila Mexicana vein system, which is one of the strongest and widest structures on the property.
  • Kootenay Silver Inc. released the results of eight core holes from its La Cigarra property in Chihuahua. The holes tested parts of the Las Carolinas, La Borracha and La Nogalera zones, returning medium to high grade silver intercepts in all areas. Highlighted results include: At La Borracha 12.37 m @ 33 g/t Ag, 0.05 g/t Au, 0.2% Pb, 0.2% Zn; At La Nogalera 1.78 m @ 48 g/t Ag, 0.72 g/t Au; 4.0 m @ 736 g/t Ag, 0.09 g/t Au, 0.3% Pb, 0.1% Zn; At Las Carolinas 14.0 m @ 79 g/t Ag, 0.03 g/t Au (including 6.79 m @ 144 g/t Ag, 0.05 g/t Au; 41.38 m @ 45 g/t Ag, 0.03 g/t Au.
  • Golden Minerals Co. disclosed that surface mapping and sampling identified the eastern extension to the Santa Maria vein at the Santa Maria project in Chihuahua. Several other veins were also discovered in the adjacent Cervantes concessions in an exploration exercise on which 542 rock chip samples were collected. The Santa Maria vein occurs as a series of quartz-calcite veins up to 4.5 m in width, returning assays as high as 0.6 g/t Au, 347 g/t Ag, 1.2% Zn. The Cervantes quartz-calcite vein system occurs 800 m east of the current resource area, for 700 m of strike length, returning up to 1.6 g/t Au, 207 g/t Ag, 0.24% Cu, 5.6% Pb, 19.5% Zn over widths of up to 1.3 m. Golden estimates completing the PEA during the third quarter of 2018.
  • Orla Mining Ltd. filed a preliminary economic assessment (PEA) on its Camino Rojo property, Zacatecas. The PEA visualizes a technically simple open pit mine and heap-leach operation with low capital and operating costs, “rapid payback and strong financial performance”. The project envisages a 3.3 payback period, working at a 18 K tpd rate that would place 42.5 M tonnes of material on the heaps @ 0.71 g/t Au, 13.6 g/t Ag (966 K Oz Au, 18.5 M Oz Ag), with a recovery rate of 67% Au and 15% Ag, producing 97,500 Oz/year at an All-in sustaining cost of $555 Oz/Au.

ON DEALS AND CORPORATE ISSUES

  • Discovery Metals Corp. announced the appointment of Gernot Wober as its Vice-President Exploration (Puerto Rico, Coahuila).
  • Riverside Resources Inc. and Sinaloa Resources Inc. signed a letter of intent (LOI) whereby Sinaloa Resources can earn up to 100% interest in Riverside’s La Silla project in Sinaloa. The initial option to earn 70% lies on Sinaloa issuing shares for $1 M, $60K in cash payments and exploration work commitments of $3 M over 36 months. To earn an additional 30% Sinaloa must spend a further $1 M in exploration and issue Riverside $500 K in shares. Riverside is to retain a 2.5% NSR if Riverside’s interest reduces to less than 10%. Previous work in the 2,071 hectares project includes 6 drill holes on the El Roble system, with intersects of up to 15 m @ 6.9 g/t Au.
  • Riverside Resources Inc. announced that drilling assays from two campaigns funded by Centerra Gold Inc. returned insufficient mineralized thickness and continuity to justify further exploration on the Glor project in Sonora. Riverside believes it has tested the best targets on the property and has terminated the underlying option earn-in agreement with Argonaut Gold.

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.

On the picture above, structure in fine grained sedimentary rocks with iron oxides and minor quartz veining, greenish clays on the walls. From a shallow epithermal system in Guanajuato. Picture by Jorge Cirett

Highlights on the Second Week of June, 2018. Mining and Exploration News in Mexico

/ Gambusino Prospector / Leave a comment

116 - copia

By Jorge Cirett

During the 24th week of the year (June 11th to June 17th, 2018), at least 16 press releases were announced by companies working in Mexico. Four companies updated on exploration advances, and one the commencement of mining activities. Four companies announced financing rounds, loans and bonds for an aggregate of over $55 M. One company disclosed news on drilling near resources and development while one other released metallurgical test results. ON MEXICO ISSUES, mining companies are awaiting a Supreme Court resolution on a Zacatecas State tax imposition on mining. ON EXPLORATION, In Sonora, Aloro updated on exploration work at Los Venados; Colibri finished drilling at El Pilar, and released results from a soil survey; Colibri disclosed drilling results by Agnico at its Pitaya project. In Veracruz, Azucar Minerals started a drilling campaign on the Norte zone and the north part of the Villa Rica zone at its El Cobre porject. ON MINING, Mexus started pilot mining at its 8 Hermanos property in Sonora. ON FINANCING, Alamaden raised $9.4 M; Starcore launched a private placement for CDN$3 M; Telson paid US$8 M and obtained a loan for US$8.5 M; Endeavour Silver is to sell common shares for an aggregate of up to $35.7 M. ON RESOURCES AND DEVELOPMENT, SilverCrest Metals released high-grade results from drilling of the Granaditas vein on Las Chispas project, in Sonora. Azure Minerals released metallurgical test results from Oposura, also in Sonora. ON DEALS AND CORPORATE ISSUES, Starcore decided not to go ahead with the acquisition of the Santa Fe property in Sinaloa. Defiance Silver entered into an agreement to acquire Mag Silver’s properties in the Zacatecas District.

ON MEXICO ISSUES

  • Fresnillo PLC and Mag Silver Corp. are awaiting a Supreme Court (Suprema Corte de la Nación) resolution on a mining duty attached to environmental impact, set by the state of Zacatecas. The federal government challenged the State’s right to impose such a duty back in 2017.

ON EXPLORATION

  • Aloro Mining Corp. updated on its exploration of the Los Venados project in Sonora. Mapping and sampling have defined a rhyodacitic volcanic dome associated with high sulfidation style alteration with Au-Bi-Mo anomalies. Several felsic dome/silica breccia complexes have been located, with the highest priority target on the dome at the southeast part of the property, where gold in soil anomalies and IP anomalies coincide. A new environmental report is being submitted to the authorities, seeking permit for 12 reverse circulation holes.
  • Colibri Resource Corp. completed the final 900 m of its 3,000 m phase 1 drilling program on its Pilar project in Sonora. Samples have been taken to the lab and results are pending. A 56 sample soil survey returned 10 samples greater than 0.1 g/t Au, and 3 samples over 1 g/t Au.
  • Colibri Resource Corp. released results from drilling on its Pitaya project in Sonora, by joint venture partner Agnico Eagle. Highlighted results from the last four holes comprise 9 m @ 0.26 g/t Au; 26 m @ 0.19 g/t Au; 34 m @ 0.22 g/t Au. During 2016-2017, Agnico drilled 7,641 m in 27 drill holes.
  • Azucar Minerals Ltd. has begun drilling the North zone and the north end of the Villa Rica zone of its El Cobre project in Veracruz. Preparations for this drilling campaign include surface and soil geologic and alteration focused mapping and sampling. “The current drilling at Villa Rica is focused on the Naranjo zone, a new area of exposed porphyry alteration and mineralisation located approximately 500 metres north of the previous Villa Rica drilling and about 1.2 kilometres south of the Norte Zone.”

ON MINING

  • Mexus Gold US begun mining at the 8 Brothers/370 project in Sonora. “The company has mined 1000 tons of material containing an average of 9 grams Au and 50 grams Ag per ton. This material is currently being run through a crushing system and placed into an aerated VAT holding tank”. Its portable Merril Crowe system has been installed and tested.

ON FINANCING

  • Almaden Minerals Ltd. closed its previously announced non-brokered private placement, raising gross proceeds of $9.44 M. Finders fees of $384.9 K cash and finder warrants of 192,450 shares at $1.35 until June 7, 2020 were paid to arms-length, licensed securities dealers on a portion of the offering (Ixtaca, Puebla).
  • Starcore International Mines Ltd. launched a private placement of secured bonds for CDN$3 M. “The Bonds will bear interest at 8% per annum, payable on maturity, and will mature 24 months from the date of closing” (San Martin mine, Queretaro).
  • Telson Mining Corp. announced the payment of US$8 M to Nyrstar Mining Ltd. as partial payment, and entered into a loan agreement with Nyrstar Canada (Holdings) Ltd. that converts the final US$8.5 M due on the Campo Morado acquisition agreement into a loan that extends the payment terms for eight months. The principal due is US$8.5 M that are to be paid starting July 13, 2018 with a monthly minimum of US$1 M plus interest, plus 70% of the free cash flow generated by Telson and any monthly excess cash balance above US$500 K.
  • Endeavour Silver Corp. is to sell from time to time and its discretion common shares for an aggregate of up to US$35.7 M, through “at the market” distributions (Terronera, Jalisco).

ON RESOURCES AND DEVELOPMENT

  •  SilverCrest Metals Inc. announced new drill results for the Granaditas vein at its Las Chispas property in Sonora. Highlighted true width (TW) intervals comprise 1.5 m @ 3.63 g/t Au, 190 g/t Ag; 1.8 m @ 12.14 g/t Au, 1,440 g/t Ag (including 0.40 m @ 47.50 g/t Au, 5,620 g/t Au); 1.3 m @ 3.24 g/t Au, 339 g/t Ag; 1.2 m @ 1.23 g/t Au, 114 g/t Ag. The vein has a high-grade footprint currently at 150 m long by 100 m high and 1.5 m average true width, grading 5.69 g/t Au, 596 g/t Ag.
  • Azure Minerals Ltd. released metallurgical test work results on its Oposura project in Sonora. Azure highlights a 34% overall increase in the recovery of Pb and Zn using a dense media separation technique.

ON DEALS AND CORPORATE ISSUES

  • Starcore International Mines Ltd. completed its due diligence and review of the Santa Fe project in Sinaloa, under a previously signed LOI (letter of intent). Starcore will not be proceeding with the acquisition.
  • Defiance Silver Corp. entered into an agreement to acquire Mag Silver’s Zacatecas silver district holdings. Mag Silver is to receive 5 M common shares of Defiance, approximately a 5% investment position. Defiance is to receive a 100% interest in the Lagartos project, along with a regional database. The company is to control 1,506 ha, including 65% of the Veta Grande vein and the San Acacio silver deposit.

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.

On the picture above, intense kaolinitization of felsic volcanic rocks on a shallow epithermal system in Guanajuato. Picture by Jorge Cirett.

 

Highlights on the First Week of May, 2018. Mining and Exploration News in Mexico

/ Gambusino Prospector / Leave a comment

093 - copia

By Jorge Cirett

During the 18th week of the year (April 30th to May 6th, 2018), at least 21 press releases were announced by companies working in Mexico, with news on the exploration of eight properties, eight more companies releasing Q1 2018 results, and Primero Mining extending its revolving credit facility. ON MEXICO ISSUES, production statistics for the mining sector on February 2018 were published. ON EXPLORATION, In Sonora, Azure updated on exploration efforts at its Oposura, Alacrán and Sara Alicia projects; Alamos Gold presented exploration plans on the Mulatos district; San Marco Resources obtained the Suanse property by lottery. In Coahuila, Discovery Metals disclosed underground channel sample results from its Puerto Rico property; Silver Bull acquired a 60 ha claim within its large land package in Sierra Mojada. In Veracruz, Mexican Gold released channel sampling results from the Changaro zone at its Las Minas project. ON MINING, Argonaut Gold, Santacruz Silver, Gold Resource, Alamos Gold, Golden Minerals, Leagold, Great Panther and Telson Mining presented Q1 2018 production reports. ON FINANCING, Primero Mining agreed on the extension of its revolving credit facility. ON RESOURCES AND DEVELOPMENT, Golden Minerals released drill results from its Santa Maria property in Chihuahua. Argonaut updated on exploration in properties in Guanajuato and Baja. Minera Alamos announced drilling plans on the now combined Santana/Los Verdes properties.  ON DEALS AND CORPORATE ISSUES, Endeavour Silver released its annual review and sustainability report. Advance Gold contracted a third party to assist with investors relations.

ON MEXICO ISSUES

  • The mining and metallurgic production in Mexico grew 4% in February, which is the best result since April 2016, although in a yearly basis a 1.3% decrement was recorded. During February, the production of lead (-34.6%), sulphur (-12.2%), silver (-11.3%), copper (-8.2%) and coke (-5.7%) decreased, while that of iron pellets (1.1%), fluorite (1.7%) zinc (4.6%), gold (5.8%), coal (18.8%) and gypsum (19.2%) showed an increment. Sonora was the leader in gold production during February, with 3,710 Kg (119,720 Oz), while Zacatecas  kept the title in silver with 171,903 Kg (5,526,806 Oz).

ON EXPLORATION

  • Azure Minerals Ltd. completed the mineral resource drill-out of the Oposura project, in Sonora. The program included 157 holes totaling 10,112 m (assays for 27 holes still awaited), confirming good height (width) and grade continuity of the horizontal mineralization. Metallurgical studies show 85.6% Zn and 84.0% Pb recoveries. The initial mineral resource estimate is expected in June 2018.
  • Azure Minerals Ltd. completed the stage 2 drilling program at its Sara Alicia Au-Co project in Sonora. Results awaited.
  • Azure Minerals Ltd. informed the operator of its Alacrán project in Sonora, Minera Teck, S.A., completed an 11 hole drill program in December 2017, with final results awaited. Teck has informed it will continue with the year 2 work program “comprising further geological, geochemical and geophysical surveys in the first half of 2018, which will be followed by more drilling in the second half of the year”.
  • Discovery Metals Corp. disclosed assay results from continuous underground channel sampling at its Puerto Rico project in Coahuila. Results on 100 samples out of 600 samples collected on the Zaragoza mine have been received. Select significant channel samples include: 2.1 m @ 822 g/t Ag, 2.1% Zn, 2.5% Pb, 0.7% Cu; 1.8 m @ 55 g/t Ag, 27.9% Zn, 2.9% Pb, 0.1% Cu; 3.3 m @ 175 g/t Ag, 2.1% Zn, 15.2% Pb, 0.2% Cu; 2.3 m @ 62 g/t Ag, 9.2% Zn, 6.5% Pb, 0.1% Cu; 1.3 m @ 75 g/t Ag, 16.8% Zn, 3.2% Pb, 0.1% Cu. Average manto grades 157 g/t Ag, 6.2% Zn, 5.5% Pb, 0.1% Cu.
  • Mexican Gold Corp. released channel sampling results from the La Perdida mine in the Changaro zone at its Las Minas project in Veracruz. At La Perdida adit, four 2.0 m samples returned 7.85 g/t Au, 3 g/t Ag, 0.14% Cu; 0.30 g/t Au, 1 g/t Ag, 0.05% Cu; 16.70 g/t Au, 12 g/t Ag, 0.49% Cu; 27.30 g/t Au, 12 g/t Ag, 0.17% Cu, averaging 8.0 m @ 13.04 g/t Au, 7 g/t Ag, 0.21% Cu.
  • Alamos Gold Inc. informed exploration in its 28,777 ha land package at Mulatos, Sonora, is to focus in 2018 outside the Mulatos mine, including the El Carricito, El Halcon, and El Jaspe areas. During the first quarter Alamos invested $4.5 M in exploration activities within the Mulatos district, including 14,792 m of diamond drilling and 1,059 m of RC drilling.
  • Silver Bull Resources Inc. acquired a 68 ha mineral license nine kilometers NW from its main Sierra Mojada deposit in Coahuila. The application “covers 13 historical mine shafts in the Palomas Negros area including a 120 meter long x 25 meter wide x 25 meter deep historical open pit”. Select sampling on the open pit returned up to 542 g/t Ag, 36.5% Zn, 9.3% Pb, 0.14% Cu on 2 m channel sampling.
  • San Marco Resources Inc. obtained the Suanse property in Sonora through the recent mineral concession lottery by the Mexican government. The property is located between two mineral concessions within Evrim’s LLano del Nogal porphyry copper moly play.

ON MINING

  • Argonaut Gold Inc. presented first quarter 2018 operating and financial results. At El Castillo in Durango, 4.72 M tonnes of waste were moved, 1.62 M tonnes of ore were mined (52 K tonnes per day, or tpd) @ 0.44 g/t Au, producing 8,657 Oz Au, 7,528 Oz Ag. At San Agustin in Durango, 356 K tonnes of waste were moved 1.72 M tonnes of ore mined (23 K tpd) @ 0.50 g/t Au, producing 15,824 Oz Au, 80,331 Oz Ag. Cash cost was $1,020 for El Castillo and $365 for San Agustín. At La Colorada in Sonora, 6.13 M tonnes of waste were moved, 1.1 tonnes of ore mined (80 K tpd) @ 0.43 g/t Au, producing 14,291 Oz Au, 57,767 Oz Ag at cash cost $726. Cash and cash equivalents of $21.3 M at the end of the period.
  • Santacruz Silver Mining Ltd. reported financial and operating results for Q4 2018. During the period 181 K tonnes were processed, producing 865.5 K Oz AgEq at cash cost $23.07 and AISC $27.56 per AgEq Oz.
  • Gold Resource Corp. reported first quarter 2018 production results. During the period the company produced from three different orebodies on its El Aguila property in Oaxaca. At Arista 130.8 K tonnes were milled @ 1.92 g/t Au, 106 g/t Ag, 0.39% Cu, 1.63% Pb, 4.41% Zn, with recoveries of 78% Au, 91% Ag, 75% Cu, 76% Pb, 83% Zn. At the El Aguila open pit, 5.1 K tonnes were milled @ 2.16 g/t Au, 45 g/t Ag, and recoveries of 84% Ag, 86% Ag. At Altagracia 3.2 k tonnes were milled @ 1.16 g/t Au, 182 g/t Ag, and recoveries of 60% Au, 82% Ag. Production amounted to 6,647 Oz Au, 425.9 K Oz Ag, 385 tonnes Cu, 1,615 tonnes Pb, 4,793 tonnes Zn. Cash cost was ($316) per AuEq Oz after by-product credits, and AISC $347 per precious metal gold equivalent ounce sold. Cash and cash equivalents at quarter end totaled $28.6 M.
  • Alamos Gold Inc. reported its financial results for the first quarter 2018, including figures from its Mexican operations. At Mulatos in Sonora, 2.2 M tonnes were mined and 2 M tonnes of waste moved. Average grade of 1.75 M tonnes stacked was 0.84 g/t Au. As for high grade, 30.4 k tonnes were milled @ 8.11 g/t Au, for the production of 46,000 Oz Au at cash cost $786 per OZ Au, and AISC $842 per Oz Au. At El Chanate in Sonora, 1 M tonnes of ore were mined @ 0.60 g/t Au, with recoveries of 71% Au, to produce 13,800 Oz Au.
  • Golden Minerals Co. provided business and financial results for the first quarter 2018. During the period Golden received $1 M from Electrum Global Holdings, LP. in exchange for an amendment to the Electrum farm-out agreement providing Electrum an additional 20% interest in the Celaya project. Also 4,800 m in 22 holes were drilled on the Santa Maria property in Chihuahua. Cash and cash equivalents of $2.7 M at the end of the period.
  • Leagold Mining Corp. reported Q1 2018 production. During the period 7.7 M tonnes were moved on the open pit at Los Filos, Guerrero, of which 2.0 M tonnes were from ore @ 0.57 g/t Au. From underground 101 k tonnes were mined @ 5.47 g/t Au. In total 1.6 M tonnes were processed @ 0.97 g/t Au to produce 51,003 Oz Au at cash cost $880 per Au Oz and AISC of 1,039 per Au Oz. Test mining at the Bermejal underground deposit is to begin in Q2 2018. Leagold’s goal is to raise quarterly production from 50 K to almost 70 K by the end of the year.
  • Great Panther Silver Ltd. presented first quarter 2018 financial results, including figures from its operations in Mexico (Topia, Durango; Guanajuato mine complex, Guanajuato). Consolidated production came from 96.9 K tonnes milled, to obtain 491 K Oz Ag, 5,831 Oz Au at cash cost $12.76 per AgEq Oz and AISC $16.16 per AgEq Oz. For 2018 14,000 m of underground drilling are planned at the Guanajuato mines, and 5,000 m of surface drilling and 5,000 of underground drilling in the San Ignacio mine (part of the mine complex). Cash and cash equivalents were $60.9 M at the end of the period.
  • Telson Mining Corp. informed on first quarter 2018 pre-production toll milling at its Tahuehueto property in Durango. During the period 9,503 tonnes of ore were milled @ 5.44 g/t Au, 62 g/t Ag, 4.5% Zn, 2.2% Pb, recovering 79.4% Au, 85.7% Pb, 84.4% Pb, 76.4% Zn to produce 360 tonnes of lead concentrate (50.2% Pb), 99.25 g/t Au, 1,185 g/t Ag, 12.2% Zn) and 713 tonnes of zinc concentrate (46.3% Zn, 7.41 g/t Au, 105 g/t Ag, 0.93% Pb).

ON FINANCING

  • Primero Mining Corp. agreed to the extension of its revolving credit facility and the related guarantee provided by Wheaton Precious Metals Corp., to May 15th, 2018 or the closing of the business combination with First Majestic Silver Corp. (San Dimas, Durango).

ON RESOURCES AND DEVELOPMENT

  • Golden Minerals Co. released results from the 2,400 m, 22-hole drilling program at its Santa Maria property in Chihuahua. Some of the highlighted true width (TW) results comprise: 0.6 m @ 593 g/t Ag, 0.79 g/t Au, 0.4% Pb+Zn; 0.8 m @ 183 g/t Ag, 0.33 g/t Au, 0.1% Pb+Zn; 2.5 m @ 415 g/t Ag, 0.29 g/t Au, 1.5% Pb+Zn; 3.8 m @ 213 g/t Ag, 0.47 g/t Au, 0.8% Pb+Zn; 1.2 m @ 200 g/t Ag, 0.22 g/t Au, 0.15% Pb+Zn; 3.5 m @ 310 g/t Ag, 0.77 g/t Au, 1.3% Pb+Zn; 1.3 m @ 1,322 g/t Ag, 2.06 g/t Au, 1.4% Pb+Zn; 0.9 m @ 148 g/t Ag, 2.0 g/t Au, 1.5% Pb+Zn; 6.5 m @ 1,094 g/t Ag, 3.64 g/t Au, 1.3% Pb+Zn. The mineralization comprised oxide, mixed and sulfide materials in different intersects.
  • Argonaut Gold Inc. informed the re-logging of drill core and the development of a geological model at Cerro del Gallo, in Guanajuato. On its San Antonio project in Baja California Sur, technical sessions were held with the Mexican Environmental Authority DGIRA in preparation of new future Environmental Assessment application submittal.
  • Minera Alamos Inc. released its plans for a drilling campaign at the now combined Santana/Los Verdes property in Sonora. The phase one is to include 20 holes in 3,000 m of drilling, focusing on the Nicho extensions and Nicho Norte, into the contiguous Los Verdes claims. Previous drilling at the Santana project outlined significant mineralization associated to hydrothermal breccias hosted by stocks and batholithic intrusions. Heap leaching tests are being conducted on the Nicho Norte zone.

ON DEALS AND CORPORATE ISSUES

  • Endeavour Silver Corp. released its annual review and sustainability report. Sections of the report include: Safety and Health, Our People, Community, Environment, Economic. In words of its CEO, Bradford Cooke: “..is intended to show that sustainability relies on the connectedness between people, communities and the environment” (La Colorada, Sonora, El Castillo, Durango).
  • Advance Gold Corp. engaged Nicosia Capital to assist on Investor Relations. “Advance will pay Nicosia a fee of $3,500 per month and issue 100,000 stock options at a price of $0.12 per share. The initial agreement with Nicosia has a term of two months to commence May.1st, 2018” (Tabasqueña, Zacatecas).

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.

On the picture below, Very strong silicification and minor silicification on structures from a shallow epithermal system in Guanajuato. Picture by Jorge Cirett.

Highlights on the Third Week of December, 2017. Mineral Exploration in Mexico

/ Gambusino Prospector / Leave a comment

During the 51st week of the year (December 18th to December 24th, 2017), at least 17 press releases were announced by companies working in Mexico. ON MEXICO ISSUES: The illegal blockade promoted by the Los Mineros Union since November 3, 2017 is showing how far the government is willing to go, or not, to establish the rule of law. ON EXPLORATION: two press releases from companies working in Mexico informed on exploration efforts during the week: In Chihuahua Radius Gold released good rock chip results from its Amalia project. In Sinaloa Gainey Capital is exploring the La Minita porphyry copper style property.  ON MINING: Great Panther announced government authorization for the construction of a second tailings storage facility at its Topia mine in Durango. Mexus Gold produced gold with a Merrill Crowe system installed at its Santa Elena mine in Sonora. Americas Silver announced the San Rafael mine at its Cosala complex is now on commercial production. ON FINANCING: Telson Resources entered into a US$15 M loan with Trafigura. SilverCrest completed a bought deal private placement for $10 M. Primero Mining agreed on an extension to its revolving credit facility. Torex Gold received a waiver to lower the threshold in the credit agreement from $50 M to $30 M. ON RESOURCES AND DEVELOPMENT: In Sonora, Oceanus Resources presented an update on the drilling of its El Tigre property. In Chihuahua, Consolidated Zinc announced the interception of massive sulfides on the Tres Amigos zone of its Plomosas property. In Puebla, Almaden released new results from follow-up  drilling at its Tuligtic property.  In Guerrero, Alio Gold provided the final results of the confirmation drilling at its Ana Paula project. ON DEALS AND CORPORATE ISSUES, Torex Gold suspended its workforce employment contracts on the basis of the illegal blockade that has halted all operations since November 3rd at its El Limon-Guajes mine in Guerrero. The company has made a call to the relevant authorities to remove the illegal blockade (which seems to have fallen on deaf ears). Orex Minerals, Canasil Resources and Pan American Silver signed an agreement to advance the Sandra Escobar project in Durango, same that includes provisions for Pan American participation on the discovery. Gainey Capital signed a LOI to acquire the La Minita property in Sinaloa. Marlin Gold can now spin-off its subsidiary Sailfish Royalty. Vangold is acquiring the San Carlos claim in Guanajuato, adjacent to its Pinguico property. Americas Silver agreed with Hochschild to amend the payment schedule on the acquisition of the San Felipe project in Sonora.

ON MEXICO ISSUES

  • On the Torex Gold El Limon – Guajes mine illegal blockade in Guerrero (Editor’s comment). The illegal blockade promoted by the Los Mineros Union since November 3, 2017 is showing how far the government is willing to go, or not, to establish the rule of law. The Los Mineros Union is clearly trying to extortionate Torex with an illegal blockade to obtain the Union contract at the site, and delaying the date for a formal voting process that the company has vowed to respect.

ON EXPLORATION

  • Radius Gold Inc. released rock sampling results from its Amalia project in Chihuahua. A new discovery in the San Pedro area returned 13 m @ 2.51 g/t Au, 164 g/t Ag in a continuous chip sample (10 individual samples), while new sampling 50 m above and along strike the Guadalupe zone returned 8 m @ 0.21 g/t Au, 264 g/t Ag. At the Campamento zone a 500×700 m zone of intense silicification and brecciation with massive and stockwork veining is interpreted as high level mineralization. On lower parts of the property sulfide rich fault breccias are hosted in andesites, where mineralization is narrower and higher grade. Epithermal Au-Ag mineralization occurs along 3.5 Km on strike and 600 m of vertical interval. Drill permitting documentation has been submitted.
  • Gainey Capital Corp. signed a LOI to acquire the 9,200 hectares La Minita Cu-Au-Ag property in Sinaloa. A series of NW trending shears host porphyry mineralization associated with intermediate and felsic dikes, which are more than 300 m in length and up to 10 m in width. Fine grained sericitic alteration, silicification, quartz stockworks and copper sulfides (bornite, chalcopyrite) as disseminations and veins occur in prospect pits by gambusinos.

ON MINING

  • Great Panther Silver Ltd. announced that SEMARNAT granted all permits for construction and operation of the new phase II tailings storage facility at its Topia mine in Durango.
  • Mexus Gold US informed that it has produced gold with the installed Merrill Crowe system at its Santa Elena mine in Sonora (not to mistake with First Majestic’s Santa Elena mine, also in Sonora). The Merrill Crowe system will continue to be tested until the end of the year, as mine site security is upgraded before full production begins.
  • Americas Silver Corp. announced that the San Rafael mine at the company’s Cosalá operations in Sinaloa is now in commercial production, as of December 19, 2017. Mine production is currently averaging 1,200 tonnes per day (tpd) and increasing.

ON FINANCING

  • Telson Resources Inc. entered into a loan facility and offtake agreement with Trafigura Mexico, S.A. de C.V., to sell 100% of the Pb-Zn concentrate produced at the Tahuehueto mine from January 2018 to December 2022. Trafigura provided Telson with with a US$15 M credit facility deliverable on three tranches: First tranche of US$7.5 M already received; Second tranche of US$5 M, 4 – 6 Months from signing; Third tranche US$2.5 M, 6 – 9 months of signing.
  • SilverCrest Metals Inc. completed the bought deal private placement previously announced, for gross proceeds of $10 M. The company paid a cash commission of $568 K on the proceeds of the offering.
  • Primero Mining Corp. agreed with its lenders to an extension of its revolving credit facility and guarantee provided by Wheaton Precious Metals Corp. to January 11, 2018. Primero is considering the divestiture of its San Dimas mine in Durango.
  • Torex Gold Resources Inc. has received a waiver by BNP Paribas on behalf of the lenders to lower the covenant threshold in the credit agreement from $50 M to $30 M until January 31, 2018.

ON RESOURCES AND DEVELOPMENT

  • Alio Gold Inc. provided the final results from the 2,000 m drill program to twin previous drill holes within the pre-feasibility pit for metallurgical test at its Ana Paula project in Guerrero. Highlighted intervals comprise: 112.0 m @ 3.85 g/t Au; 33.1 m @ 7.07 g/t Au; 54.6 m @ 7.19 g/t Au. Alio is now to test the extension of the breccia zone below the proposed pit, with a 4,000 m program, commencing in January.
  • Almaden Minerals Ltd. provided assay results from a follow-up drilling in an upper portion of the pre-feasibility pit on its Tuligtic property in Puebla. Highlighted drill intercepts comprise: 46.0 m @ 0.74 g/t Au, 26 g/t Ag; 24.0 m @ 0.62 g/t Au, 15 g/t Ag; 16.5 m @ 0.56 g/t Au, 10 g/t Ag; 50.5 m @ 0.73 g/t Au, 11 g/t Ag (including 10.5 m @ 2.45 g/t Au, 24 g/t Ag); 13.15 m @ 0.70 g/t Au, 8 g/t Ag; 32.0 m 0.82 g/t Au, 25 g/t Ag; 14.7 m @ 0.91 g/t Au, 27 g/t Ag; 10.25 m @ 1.16 g/t Au, 26 g/t Ag.
  • Consolidated Zinc Ltd. announced that drilling on the Tres Amigos North zone intersected 5.60 m and 4.35 m respectively of massive sulfides. “Assays are pending but visual analysis shows mineralisation comprises banded textured massive sulphides with very fine to fine-grained pyrite overprinted by coarse-grained yellow to reddish sphalerite and minor galena associated with carbonates”. Results are pending.
  • Oceanus Resources Corp. completed the fall 2017 drill program which comprised 600 m of diamond drilling to define the strike and dip of the high-grade Caleigh vein and the low-grade alteration zone in the hanging wall. Assays for the last six holes are pending, and expected to be released in January 2018. Work during Q1 2018 is to focus in locating and defining other high-grade vein systems in the property, and begin to look for mineralization on the favorable El Tigre formation over a distance of 5 km.

ON DEALS AND CORPORATE ISSUES

  • Torex Gold Resources Inc. informed it has suspended the employment contracts of its workforce in Mexico, a direct result of an illegal blockade at its El Limon-Guajes mine in Guerrero. The blockade by the Los Mineros Union, “an outside union that wants to take over representation of the employees who already have a union. Since the blockade began, on November 3, 2017, the Company has continued to pay its workforce, except for the minority that have participated in the illegal blockade”. Torex has made a call to the relevant authorities to remove the illegal blockade, as they have committed to do, and restore the rule of law. The company is willing to work with the Union the employees select, but it is essential the illegal blockade is lifted to resume work after Christmas. The company stresses that “The risk of violent confrontation continues to escalate and we urge the authorities to restore law and order and diffuse the tensions, so that employees of the Company, contractors, and suppliers, can go back to work and provide for their families.”
  • Orex Minerals Inc. signed a non-binding agreement with Canasil Resources Inc. and Pan American Silver Corp. to advance exploration in the Sandra Escobar mining camp in Durango. Under the terms of the LOI (Letter of Intention) the Orex (55%)-Canasil (45%) JV is to grant Pan American a 10% interest in the Sandra property, with the opportunity for Pan American in the next four years to earn-in an additional 41% in the Sandra property by contributing US$5 M toward the operations of both properties, with US$2 M required during the first two years. If Pan American elects not to continue during the earn-in period, the initial 10% will revert back to the Orex-Cansil JV. If Pan American chooses to further advance the properties by completing a pre-feasibility study, it will retain a 60% interest and the Orex-Canasil JV 40%.
  • Gainey Capital Corp. signed a LOI with Asteria Mining Services S.A.P.I. de C.V. to acquire 100% of the 9,200 hectares La Minita Cu-Au-Ag property in Sinaloa.
  • Marlin Gold Mining Ltd. obtained a final order from the Supreme Court of British Columbia to implement the company’s previously announced plan of arrangement to reorganize its business, including the spin-off of its subsidiary Sailfish Royalty Corp.
  • Vangold Mining Corp. entered into an acquisition agreement for a 100% interest on the San Carlos claim, in Guanajuato. The aggregate purchase price of $CDN425 K is to be paid through the issuance of CDN$350 K in Vangold shares and the remaining CDN$75 K will be paid in cash. The San Carlos property is close to Vangold’s El Pinguico and Patito I & II mineral claims.
  • Americas Silver Corp. agreed with Minera Hochschild to amend the timing of payment under its option agreement on the San Felipe project in Sonora. The total consideration for a 100% interest in the property is US$15 M in cash (plus VAT), of which US$7 M were paid in March, US$500 K are to be paid on January 2018, US$500 K on April 2018, US$1 M on July 2018 and US$6 M on December 2018.

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.

On the picture below, Fault slickensides on quartzite, Durango. Photo by Jorge Cirett.

DCP00749

Highlights on the Second Week of December, 2017. Mineral Exploration in Mexico

/ Gambusino Prospector / Leave a comment

During the 50th week of the year (December 11th to December 17th, 2017), at least 20 press releases were announced by companies working in Mexico. ON MEXICO ISSUES: The workers of the El Limon-Guajes mine in Guerrero voted for returning to work, in a poll sponsored by the company to show the government the worker’s support. The Federal and State authorities keep dragging their feet to end the illegal blockade that has lasted for six weeks now. ON EXPLORATION: six press releases from companies working in Mexico informed on exploration efforts during the week: In Sonora Riverside informed partner Centerra Gold commenced a drill program on its Glor project. Colibri Resource released drill intercepts by Agnico Eagle in its JV Pitaya project. Azure Minerals confirmed extensive high-grade Zn-Pb intersections on its drilling at Oposura; In Chihuahua, Harvest Gold is seeking the permit for drilling at Cerro Cascaron; In Sinaloa, Chesapeake Gold informed on drill results at its Yareli project; In Veracruz, Almadex presented high-grade Cu-Au intersection on its El Cobre project.  ON MINING: Torex Gold informed that a majority of its workers voted to end the illegal blockade to its Limon-Guajes mine in Guerrero. ON FINANCING: Silver Spruce is conducting a financing round in Hong Kong aiming to raise up to US $1.8 M (Pino de Plata, Chihuahua); Kootenay Silver closed the first tranche of its private non-brokered placement, for gross proceeds of $3.8 M; Mammoth Resources closed its private non-brokered placement for gross proceeds of $720 K; Bacanora Minerals informed that Next View Capital acquired 19.9% of the company, raising $C53.5 M; Primero Mining agreed on another revolving credit facility extension; Consolidated Zinc announced the commitment by investors to a placement for $1.96 M. ON RESOURCES AND DEVELOPMENT: In Veracruz, Mexican Gold presented further high-grade results from its drilling at Las Minas; In Puebla, Almaden Minerals completed a social impact assessment at its Ixtaca project. In Durango, Excellon commenced an extensive exploration program at its Platosa mine property. ON DEALS AND CORPORATE ISSUES, Silver Viper signed a LOI on the three core claims of the La Virginia project in Sonora; In Zacatecas, Santacruz Silver and the Contracuña companies amended the agreement on the purchase of the Veta Grande properties. Concurrently, Santacruz Silver and Carrizal Mining signed an agreement upon which Carrizal can obtain a 20% interest on the Veta Grande and other Zacatecas properties.

ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

  • Colibri Resource Corp. announced drill results provided by its JV partner Agnico Eagle on its Pitaya project in Sonora. Highlighted intervals comprise 2.2 m @ 20.96 g/t Au, 57 g/t Ag; 20 m @ 0.42 g/t Au; 19.0 m @ 0.50 g/t Au; 32.1 m @ 0.45 g/t Au; 27.0 m @ 0.37 g/t Au, 65.0 m @ 0.30 g/t Au; 25.0 m @ 0.80 g/t Au; 37.1 m @ 0.55 g/t Au; 29.30 m @ 0.57 g/t Au. A total of 7,286 m in 26 drill holes have been sunk, drilling is still in progress.
  • Riverside Resources Inc. announced that partner, Centerra Gold Inc., commenced a 1,200 m drill program at the Glor project in Sonora. The diamond drill campaign is focusing on targets developed by detailed mapping, soil geochemistry, two ground magnetic surveys and an induced polarization survey.
  • Azure Minerals Ltd. confirmed extensive high-grade Zn-Pb at its Oposura project in Sonora. Highlights include intercepts of 17.35 m @ 3.7% Zn, 4.0 % Pb, 18 g/t Ag; 2.30 m @ 5.3% Zn, 3.9% Pb, 15 g/t Ag; 6.85 m @ 9.0% Zn, 4.0% Pb, 39 g/t Ag; 4.30 m @ 2.3% Zn, 1.1% Pb, 5 g/t Ag; 6.15 m @ 2.9% Zn, 2.6% Pb, 19 g/t Ag; 4.32 m @ 6.4% Zn, 5.0% Pb, 26 g/t Ag; 16.62 m @ 12.7% Zn, 5.5% Pb, 27 g/t Ag; 5.2 m @ 4.9% Zn, 3.1% Pb, 11 g/t Ag; 6.95 m @ 4.3% Zn, 1.2% Pb, 15 g/t Ag; 3.95 m @ 4.7% Zn, 5.3% Pb, 26 g/t Ag; 5.35 m @ 8.1% Zn, 4.7% Pb, 27 g/t Ag; 6.40 m @ 10.4% Zn, 5.9% Pb, 42 g/t Ag; 3.95 m @ 8.8% Zn, 5.9% Pb, 49 g/t Ag. Samples for 43 holes have been sent for analysis, with assays received for 19 of these holes. To date 62 holes have been drilled, for 3,661 m, with the second-half of the resource drill-out program progressing well.
  • Almadex Minerals Ltd. presented results from two more holes from the Raya Tembrillo area, which is the northern part of the Villa Rica zone of its El Cobre project in Veracruz. Drill core intercepts comprise 100.0 m @ 0.15 g/t Au, 0.67% Cu (including 48.0 m@ 0.29 g/t Au, 1.23% Cu) of chalcocite dominant enriched zone and 205.40 m @ 0.18 g/t Au, 0.20% Cu (including 82.0 m @ 0.20 g/t Au, 0.28% Cu) of hypogene mineralization in one hole; 20.0 m @ 0.34 g/t Au, 0.04% Cu in the gold zone, 94.0 m @ 0.07 g/t Au, 1.36% Cu (including 43.0 m @ 0.09 g/t Au, 2.45% Cu) in the enriched zone, and 58.0 m @ 0.18 g/t Au, 0.22% Cu in the hypogene zone.
  • Chesapeake Gold Corp. provided an update of phase 1 drilling and district wide exploration at its 72,000 hectare Yareli project in Sinaloa. At the Central prospect five core holes have been drilled with 1,200 m testing stockwork zones over one Km in length and quartz-calcite veins. Three holes demonstrated a zonation of shallow zinc (0.3%) to copper at depth (40-189 m of > 400 ppm Cu) in disseminated pyrite and veinlets with trace chalcopyrite. At the Central-Spaniard zone two holes intersected veins running 1.0 m @ 6.3 g/t Au, 969 g/t Ag, 0.5% Pb, 0.6% Zn and 5.1 m @ 0.6 g/t Au, 58 g/t Ag. At Loretos an ongoing drill hole has intersected over 100 m of feld-K alteration and silica flooded breccias cut by quartz veinlets with sulfides. At the Yasmin prospect geochemical sampling over an IP anomaly has returned 0.1 to 0.7 g/t Au in zones 5 to 30 m wide, while quartz veins returned 3.3 m @ 5.0 g/t Au, 179 g/t Ag; 3.0 m @ 4.2 g/t Au. At the Lucy prospect, channel sampling has returned 30 m @ 0.4 g/t Au, 12 g/t Ag, 3.7% Zn; 3 m @ 0.5 g/t Au, 24 g/t Ag, 5.5% Zn, 0.3% Cu.
  • Harvest Gold Corp. announced that the permitting process to drill its Cerro Cascaron project in Chihuahua is underway. The drill program includes up to 30 holes from 50 to 300 m in length in the 6,900 hectare project.

ON MINING

  • Torex Gold Resources Inc. reported that a majority of its employees have voted to return to work immediately. Torex organized an off-site vote on December 14 2017, for its 520 employees that are eligible to join a union. The purpose of the vote was to give union eligible employees an opportunity to speak for themselves in a safe and independent environment. “During the vote, unionized employees were asked if they wanted the illegal blockade lifted immediately so they can return to work. In the end, the vote was overwhelmingly (99%) in favour of lifting the blockade immediately. 274 of the 520 voters were able to attend and vote. The Company could not send buses to the communities that are behind the blockades. The Company believes the numbers able to attend the vote, would have been much higher if it were not for Los Mineros intimidation of local employees. An example of such intimidation was the stopping of a vehicle that was taking employees from behind the blockade to the vote. Employees on the vehicle were told to get out of the vehicle. They did, and walked home.”

ON FINANCING

  • Silver Spruce Resources Inc. received a financing mandate letter from Securities Ltd. a brokerage firm from Hong Kong, to provide up to US$1.8 M in gross proceeds. The agent will receive 10% of the capital raised by the agent and 1% of the capital raised by the company. Proceeds are to be used to fund the drill program at Pino de Plata, in Chihuahua, and for other ends.
  • Kootenay Silver Inc. has closed the initial tranche of its non-brokered private placement for gross proceeds of $3.9 M. Cash finder’s fee of $154.6 K have been paid (La Cigarra, Chihuhahua).
  • Mammoth Resources Corp. closed its previously announced non-brokered private placement, for gross proceeds of $720 K. The proceeds are to be used on drilling up to 3,000 m testing up to 24 targets along a 5 km trend of gold-silver mineralization on its Tenoriba project in Chihuahua.
  • Bacanora Minerals Ltd. announced that NextView Capital, a Chinese institutional fund management group focused on new technologies and energy, agreed to acquire 19.89% equity interest in Bacanora. The C$53.5 M raised by the placement will be used for the continued development of the Sonora Lithium project. Bacanora has agreed to supply 5 K tpa (tonnes per annum) of Li carbonate, with a firm commitment to supply 8 K tpa lithium carbonate during stage 2 and to supply a further 7 K tpa Li carbonate during stage 2.
  • Primero Mining Corp. agreed with its lenders to an extension of its revolving credit facility and guarantee provided by Wheaton Precious Metals Corp, from December 15 to December 22, 2017. This agreement provides the ability to continue negotiations surrounding its previously announced strategic review process and the possible divestiture of its San Dimas mine in Durango.
  • Consolidated Zinc Ltd. received commitments for a placement of $1.96 M from new and existing investors. The funds raised will be used to accelerate resource drilling that is currently underway in the Plomosas mine and several new areas (Plomosas, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Mexican Gold Corp. presented drill results from four more holes at its Las Minas project in Veracruz. The holes were testing the dike contact mineralized zones, intersecting 38.0 m @ 3.53 g/t Au, 6 g/t Ag, 1.5% Cu (including 14.0 m @ 2.00 g/t Au, 13 g/t Ag, 3.0% Cu); 44.0 m @ 1.71 g/t Au, 4 g/t Ag, 1.2% Cu (including 22.0 m @ 2.85 g/t Ag, 5 g/t Ag, 1.4% Cu); 30.0 m @ 0.72 g/t Au, 6 g/t Ag, 1.2% Cu (including 0.82 g/t Au, 7 g/t Ag, 1.6% Cu); 22.0 m @ 1.14 g/t Au, 6 g/t Ag, 1.2% Cu (including 4.0 m @ 4.2 g/t Au, 23 g/t Ag, 4.8% Cu).
  • Leagold Mining Corp. completed the Bermejal Underground drill program at the Los Filos mine in Guerrero. The program totaled 56,191 m in 111 holes. Highlights of 10 new holes comprise true width intercepts of 8.83 m @ 3.74 g/t Au, 16.02 m @ 7.25 g/t Au, 2.80 m @ 3.42 g/t Au in one hole; 2.22 m @ 5.90 g/t Au, 3.89 m @ 4.98 g/t Au, 0.94 m @ 19.55 g/t Au, 4.04 m @ 8.68 g/t Au in a second hole; 4.11 m @ 4.04 g/t Au, 8.02 m @ 3.53 g/t Au, 5.80 m @ 3.92 g/t Au, 2.46 m @ 23 .63 g/t Au in other hole; 7.44 m @ 9.96 g/t Au; 10.58 m @ 8.36 g/t Au; 3.29 m @ 14.73 g/t Au, 8.57 m @ 11.00 g/t Au, etc. “The Bermejal Underground deposit is at the northern end of a large intrusive body which has a total circumference of at least 15 kilometres, ….. mineralization extends approximately 1,600 metres along the strike of the intrusive contact and has a vertical depth extent of over 800 metres.”
  • Almaden Minerals Ltd. completed a social impact assessment (SIA) at its Ixtaca project in Puebla. The study was completed by GMI Consulting, a firm with extensive Mexican and International experience in human rights, environment and economics. This is the first time that such a study has been completed in the minerals industry in Mexico, as only the energy industry requires its filing for permitting. The report key points include: that Almaden Minerals consultation process complies with the Equator principles and international best practices and that Almaden has consulted widely within the Focus area communities, the Ixtaca project was understood, and that the SIA itself was successful in providing people with an opportunity to express their views on the impacts of the project.
  • Excellon Resources Inc. commenced an extensive surface exploration program on the 21,000 hectare Platosa property in Durango, targeting extensions to the Platosa mine and new manto and skarn discoveries. The program comprises an extensive soil program and induced polarization survey at developing targets, including Saltillera, Jaboncillo and San Gilberto as well as 30,000 m of diamond drilling. The drilling is focused on defining additional tonnage at the Platosa mine, finding new mineralization manto targets on the Platosa corridor, south of the Guadalupe South manto, and north of the Guadalupe North manto, manto targets defined by IP and gravity geophysics and skarn targets similar to Rincon (43.4 m @ 146 g/t Ag, 2.8% Pb, 1.9% zn, 0.22 g/t Au), which have been defined through reprocessing of IP, magnetics (ZTEM) and gravity geophysics,

ON DEALS AND CORPORATE ISSUES

  • Silver Viper Minerals Corp. signed a non-binding 120 days letter of intent (LOI) on three mineral concessions forming the core of the La Virginia gold-silver project in Sonora. Silver Viper can earn 100% ownership of the 2,102 hectare project by making cash payments totaling US$4.5 M in staged payments over a four year period as follows: First anniversary US$200 K, second anniversary US$500K, third anniversary US$1 M, fourth anniversary US$2.8 M. The company is to assume the claim taxes and maintenance costs, while owners retain a 2% NSR which might be purchased for US$2.0 M within 5 years of the effective date, or for US$3.0 M after that period. “La Virginia is characterized by laterally extensive epithermal style gold-silver mineralization in quartz stockworks, veins and hydrothermal breccias hosted in andesites and felsic dykes….The largest historical workings, “La Virginia” and “Con Virginia” are still accessible and host mineralization ranging between one metre to greater than twenty metres in thickness.”
  • Santacruz Silver Mining Ltd. reached an agreement with the Contracuña group of companies to amend the terms of the option agreement to acquire 100% ownership of the Veta Grande project, including the Veta Grande mine and mill facilities as well as the Minillas property in Zacatecas. The amended payment schedule is as follows: US$500 K paid on December 13, 2017; US$500 K on December 2018; US$2.5 M on December 2019; US$2.5 M on December 2020; US$5 M on December 2021; US$4.5 M on December 2022. Contracuña keeps a 1% NSR that commences on December 2022, same that can be bought by US$ 1.5M.
  • Santacruz Silver Mining Ltd. concurrently with the above entered into a binding LOI with Carrizal Mining S.A. de C.V., pursuant to which Carrizal will acquire 20% working interest in the Veta Grande project, as well as the Zacatecas properties under option by Santacruz from Golden Minerals Company. Carrizal can earn in its 20% by funding 100% of the cost of the increase in capacity of the Veta Grande mill to 750 tpd, as well as providing drill rig and drilling materials to conduct exploration drill campaigns at the Veta Grande mine and Panuco deposit. In addition, Carrizal is providing a short-term working capital advance of US$500 K. Upon completion of the required earn-in expenditures a (20%) Carrizal and (80%) Santacruz joint venture will be formed.
  • Canasil Resources Inc.’s have approved a plan of arrangement to segregate its British Columbia properties (Esperanza, Zacatecas).

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.

On the picture below, Fault scarp on quartzite, Durango. Photo by Jorge Cirett.

DCP00745

Highlights on the Fourth Week of November, 2017. Mineral Exploration in Mexico

/ Gambusino Prospector / Leave a comment

During the 47th week of the year (November 20th to November 26th, 2017), at least 32 press releases were announced by companies working in Mexico. ON MEXICO ISSUES: No relevant news. ON EXPLORATION: six companies informed on exploration efforts during the week: In Sonora Azure Minerals reported favorable metallurgical results from its Oposura project. In Chihuahua Monarca is to acquire the San Jose project; Mammoth Resources mobilized equipment to drill its Tenoriba property. In Sinaloa Starcore is to acquire the Santa Fe project, with an historical Au-Ag resource. Silver Bull released drill results from the sulfide zone at Sierra Mojada; Prize Mining is to acquire the Manto Negro stratabound copper project. Evrim Resources announced the acquisition of the Cuale high sulfidation property. In Veracruz Mexican Gold announced step-out drilling mineralization intercepts at Las Minas. ON MINING: Impact Silver presented its quarterly report. Marlin Gold informed on the mining program at La Trinidad in Sinaloa.  In Zacatecas, operations recommenced at the Santacruz Silver’s Veta Grande mill after the PROFEPA suspension. MX Gold informed on advance at the Magistral tailings project in Durango. Americas Silver informed the San Rafael mine is sourcing all ore treated in Cosalá. ON FINANCING: Telson Resources received $1 M from the exercise of warrants. Aztec Minerals is now trading on the USA. Primero Mining obtained an extension on its revolving credit facility. ON RESOURCES AND DEVELOPMENT: Leagold Mining reported more high-grade results from drilling at Bermejal Underground on its Los Filos property in Guerrero. Stroud Resources announced an updated resource estimate for its Santo Domingo Hostotipaquillo deposit in Jalisco. Almaden Resources released more drill results from the Ixtaca deposit in Puebla.  ON DEALS AND CORPORATE ISSUES: Soleil Capital and Goldplay Exploration are to amalgamate to create a precious metals exploration company focused in Mexico. Monarca Minerals signed a LOI to acquire the San Jose property in Chihuahua. Starcore entered into a LOI to acquire the Santa Fe property in Sinaloa. Camrova Minerals (Baja Mining) has seen its interest on El Boleo property (in Baja California) reduced to 7.3%. Bacanora Minerals is involved in a lawsuit over a 3% royalty on its Sonora lithium project. Golden Goliath has received the fifth payment on the option of its Uruachic properties. Prize mining is to acquire the Manto Negro project in Coahuila from Scion Mines.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Azure Minerals Ltd. reported metallurgical results from its Oposura project in Sonora. The test returned over 70% and 80% recoveries respectively for Pb and Zn, producing a lead concentrate (>55% Pb, 360 g/t Ag) and a zinc concentrate (>55% Zn) with low levels of deleterious elements. More metallurgical studies will be undertaken on core material from the present drill campaign.
  • Monarca Minerals Inc. entered into a letter of intent (LOI) to acquire the San Jose property in Chihuahua. The 5,580 hectares project shows disseminations, stockwork and veins of skarn, gossan and altered intrusive rocks, with assays of up to 26.8 g/t Au, 161 g/t Ag, 6.5% Pb, 0.9% Zn, 4.2% Cu.
  • Starcore International Mines Ltd. entered into a letter of intent (LOI) with Eduardo de la Peña Gaitan and other owners, to acquire the 21,000 hectare Santa Fe project in Sinaloa. Previous exploration included 13,000 m of drilling in 2013, establishing an historical (Non 43-101 compliant) open pit resource of 285 K AuEq Oz in 5 M tonnes @ 89 g/t Ag, 0.56 g/t Au; or an underground resource of 225 K AuEq Oz in 1.28 M tonnes @ 266 g/t Ag, 1.83 g/t Au.
  • Mammoth Resources Corp. has mobilized a drill rig and a bulldozer to its Tenoriba property in Chihuahua. The company is to begin a 3,000 m drill program in 8 to 24 holes to test gold-silver targets on a 5 km strike length within a 15 square Km area of ubiquitous high sulfidation gold mineralization. The company announced the release of a technical report on the drill selection criteria.
  • Silver Bull Resources Inc. released results from four drill holes testing the sulfide zone below the previously defined oxide zone on its Sierra Mojada project in Coahuila. Highlighted results comprise 9 m @ 20.7% Zn, 1.0% Pb, 98 g/t Ag, 0.26% Cu, including 3.65 m @ 47.8% Zn, 2.5% Pb, 105 g/t Ag, 0.26% Cu; 3 m @ 537 g/t Ag, 3.9% Zn, 1.1% Cu, including 1 m @ 1,280 g/t Ag, 14.8% Zn, 2.3% Cu.
  • Prize Mining Corp. entered into an agreement (see the appropriate section below) to acquire the Manto Negro copper project in Coahuila. The project consists of seven mining concession covering 17,959 hectares. “The Project is identified as a stratabound Cu-Ag (+/- Pb-Zn) oxidized “Red Bed type” copper deposit… The Project area is hosted by Cretaceous carbonates and sandstones with exposures of mineralization being identified in numerous locations occurring in concordant layers ranging from 2 to 23 metres thick that are referred to as “Mantos”. Exposures of this mineralization have been identified over the 50-kilometre length of the Project.” The grades of historical sampling, trenching and drilling range from 0.73% to 5.55% Cu, 19 to 793 g/t Ag, 1.5 to 15% Pb and 0.3 to 3.64% Zn.
  • Mexican Gold Corp. announced that drilling to expand the high-grade dike contact mineralization previously encountered at its Las Minas project in Veracruz has successfully intersected long intervals of chalcopyrite-magnetite mineralization in five additional holes. Core length intervals include: 0 m; Cumulative 48.0 m; 20.3 m; cumulative 28.0 m, 28.0 m of chalcopyrite-magnetite mineralization.
  • Evrim Resources Corp. announced the acquisition and early exploration results of the 97 square kilometer Cuale gold project in Jalisco. The Cuale project was initially staked under the Callinan Royalties generative alliance (now owned by Altius Minerals Corp.) with formal title granted to Evrim for 100% ownership in November 2017. “Mineralization is found in moderately to strongly silicified rhyolite that contains up to 10% specular hematite in boxworks, interpreted to have formed after pyrite. Zones of pervasive silicification with strong clay alteration of phenocrysts trending to vuggy silica are observed..” Seven rock chip samples collected on a 500 m by 250 m zone returned from 0.19 to 4.56 g/t Au.

ON MINING

  • Impact Silver Corp. released its financial and production third quarter 2017 report. Production at the Guadalupe mill came primarily from the San Ramon Deeps, Cuchara and San Patricio mines. Highly variable ore from the San Ramon Deeps mine contributed to the lower grade mill feed @ 175 g/t Ag. Total silver production was 229.9 K Oz. Exploration work is focused on the Alacran, Alacran North, San Ramon North and El Paso vein. The company had a $6.0 M cash position at the end of the period.
  • Marlin Gold Mining Ltd. informed that most of the mining during the year at La Trinidad, in Sinaloa, focused on expanding and deepening the north side of the Taunus pit, while waste removal continues on the southern part of the pit. Up to the end of October, 35,500 Oz Au have been shipped. Drilling commenced at the Colinas target, 1.2 km south of the pit.
  • Santacruz Silver Mining Ltd. recommenced operations at its Veta Grande mill in Zacatecas, following the authorization by PROFEPA and SEMARNAT (Environmental agencies in Mexico).
  • MX Gold Corp. informed all major tankage at the Magistral tailings project in Durango has been installed, with the grinding mill scheduled for completion in Early December 2017, and the installation of the Merrul-Crowe circuit underway.
  • Americas Silver Corp. informed production from the San Rafael mine at the company’s Cosalá operations in Sinaloa is now the sole source of mill feed. The mine is currently producing over 1,000 tonnes per day (tpd) of the targeted 1,500 tpd, with a stockpile of over 25 k tonnes from San Rafael and further 50 K tonnes of ore from Nuestra Señora.

ON FINANCING

  • Telson Resources Inc. reported that all the warrants issued as part of a private placement on November 2015 have been exercised, resulting in CAD$1 M in proceeds (Tahuehueto, Durango; Campo Morado, Guerrero).
  • Aztec Minerals Corp. has been approved to commence trading in the USA as of Nov 20th 2017, on the OTCQB under the symbol AZZTF (Cervantes, Sonora).
  • Primero Mining Corp. has agreed in principle with its lenders to an extension to its revolving credit facility and guarantee provided by Wheaton Precious Metals Corp., previously maturing on November 23, 2017. The facility has been extended to December 1, 2017, providing the company to continue negotiations on its strategic review process and the possible divestiture of its San Dimas mine in Durango.

ON RESOURCES AND DEVELOPMENT

  • Leagold Mining Corp. reported additional high-grade results from the Bermejal Underground drill program at the Los Filos mine in Guerrero. “Bermejal Underground is at the northern end of a large intrusive body which has a total circumference of at least 15 kilometres…” The area being drilled extends 1,600 m along the strike of the intrusive contact and has a vertical depth extent of over 800 m. The drilling shows consistent oxide mineralization at carbonate/intrusive contacts either along the intrusive contact or below the intersection between the sill and the Bermejal intrusive contact. An updated resource estimate is expected before year end.

Leagold Bermejal Underground drilling1

  • Stroud Resources Ltd. updated the resource estimate in a new technical report on its Santo Domingo Hostotipaquillo project in Jalisco. The reports confirms the presence of 6.1 M tonnes @ 0.47 g/t Au, 101 g/t Ag and 3.48 M tones @ 0.39 g/t Au which contain 91.6 K Oz Au, 19 M Oz Ag as measured and indicated resources and 43.2 K Oz Au, 10 M Oz Ag as inferred resources. La Raya vein has a mineralized zone 35 m wide over 700 m along strike and 300 m of depth; and the Guadalupe vein is typically 15 to 30 m wide. Five additional veins have been identified for further exploration.
  • Almaden Minerals Ltd. released drill results from its ongoing exploration and development program for the feasibility study (FS) of the Ixtaca deposit at its Tuligtic project in Puebla. Two holes confirmed the discovery of an ore zone within a portion of the pit considered waste in the prefeasibility study (PFS). The holes intersected 23 m @ 0.45 g/t Au; 38.6 m @ 7.92 g/t Au, 15 g/t Ag (including 1 m @ 237 g/t Au, 232 g/t Ag); 20.4 m @ 0.89 g/t Au, 12 g/t Ag (including 7.0 m @ 2.07 g/t Au, 20 g/t Ag).

ON DEALS AND CORPORATE ISSUES

  • Soleil Capital Corp. entered into an amalgamation agreement with Goldplay Exploration Ltd. on a business combination transaction. “The purpose of the Proposed Transaction is the creation of a public, TSX Venture Exchange-listed, Mexico-focused, precious metals exploration company utilizing Goldplay’s mineral exploration strategy and experience related to the Rosario District..” in Sinaloa. Upon completion of the transaction the resulting issuer will be named Goldplay Exploration Ltd. and will be listed as a Tier 2 Mining Issuer on the Exchange.
  • Monarca Minerals Inc. entered into a letter of intent (LOI) to acquire the San Jose property in Chihuahua. The 5,580 hectares project shows disseminations, stockwork and veins of skarn, gossan and altered intrusive rocks. The terms of the LOI include a US$20 K payment on execution of the LOI (paid), US$20 K on execution of the definitive agreement, US$50 K on the first anniversary, and US100 K on the second anniversary, with the owners retaining a 2% NSR, of which one percent can be purchased by Monarca for US$100 k. Back taxes on the property of US$390 K will be paid over a period of time. Concession taxes per year are approximately US$46 K.
  • Starcore International Mines Ltd. entered into a letter of intent (LOI) with Eduardo de la Peña Gaitan and other owners, to acquire the 21,000 hectare Santa Fe project in Sinaloa. Starcore has up to 120 days to conduct due diligence work, and 30 days to complete the acquisition. Starcore is to issue 5 M shares to the owners upon signing, and will be released on four installments, and pay US$6 M as follows: US$2 M on execution; US$1 M on 18 months; US$1 M on 36 months; US$1 M on 48 months; US$1 M on 60 months.
  • Camrova Resources Inc. (Baja Mining Corp.) informed that its interest in Minera y Metalurgica del Boleo S.A. P.I, de C.V. has been reduced from 10% to 7.3%. This is a result of Korea Resource Corporation funding Camrova’s pro rata ($42.9 M) on cash calls amounting $429 M. The Boleo project is to annually produce 30 K tonnes Cu, 700 tonnes Co, 10,500 K tonnes Zn sulfate (Boleo, Baja California).
  • Bacanora Minerals Ltd. announced that it filed a statement of claim seeking to void ab initio, a 3% gross over-riding royalty held by the Estate of Colin Orr-Ewing over certain of Bacanora assets in Sonora. The company also announced amendments to the employment arrangements of certain members of the executive management firm.
  • Bacanora Minerals Ltd. has been served by the estate of the late Ian Colin Orr-Ewing with legal proceedings filed on September 20th September 2017, on a dispute regarding the ownership of 3% gross overriding royalties over Bacanora’s Sonora Lithium project and Magdalena Borates project. The Estate currently owns 8.15% of the common shares of Bacanora.
  • Golden Goliath Resources Ltd. has now received the fifth in a series of seven optional payments from Fresnillo PLC for the properties optioned to them in the Uruachic mining district in Chihuahua. This $100 K payment is to be followed by another $100 k due on May 2018 and a final US$2.3 M payment on November 2018, if Fresnillo is to keep the property. Golden Goliath plans to use the final payment to pay for the drill program on its 100% owned San Timoteo property in Chihuahua.
  • Prize Mining Corp. entered into an agreement with Scion Mines S.A. de C.V. to acquire 100% interest in the Manto Negro copper project in Coahuila, by issuing 6 M shares with a restricted lock-up and restricted resale period. Six million shares more are to be issued if the next milestones are met on a 43-101 technical report: 2 M bonus shares if the estimated copper resource is over 500 M Lb; 2 M bonus shares if the estimated copper resource is over 750 M Lb; 2 M bonus shares if the estimated copper resource is over 1 B Lb.

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.

On the picture below, magnetite-chalcopyrite mineralization on drill core from Las Minas, Veracruz. Photo by Mexican Gold Corp. on its Nov 23rd, 2017 press release.

Core from Las Minas, Veracruz, photo from press release in Nov 2017

Highlights on the Third Week of November, 2017. Mineral Exploration in Mexico

/ Gambusino Prospector / Leave a comment

During the 46th week of the year (November 13th to November 19th, 2017), at least 33 press releases were announced by companies working in Mexico, including four quarterly reports. ON MEXICO ISSUES: The Mexican environmental agency (PROFEPA) suspended Santacruz Silver Mining Ltd. operations at the Veta Grande mill in Zacatecas. ON EXPLORATION: six companies informed on exploration efforts during the week: In Sonora Aztec Minerals announced drilling is underway at the Cervantes project; Colibri has new drill targets at El Pilar project. In Chihuahua, Silver Spruce is on the drill permitting process stage for its Pino de Plata property; Endeavour released drill results with bulk mining potential at its Parral project. In Coahuila Alset Minerals  applied for over 400 K hectares of ground in mining concessions, looking for lithium brines. In Sinaloa, Santana Minerals disclosed high-grade historical assays from the Lupita prospect, in its Cuitaboca project.  ON MINING: Mag Silver, Leagold Mining, Primero Mining and Starcore International presented quarterly results. Vangold Mining informed of a sampling program to measure the backfill resource at the Pinguico property in Guanajuato. Telson Resources delivered the first concentrates from Campo Morado, in Guerrero. In Zacatecas, operations at Santacruz Silver’s mill in Vetagrande, Zacatecas were suspended by PROFEPA. ON FINANCING: This was definitely a good week, with six companies reporting the opening or closing of financing rounds: VVC Exploration, Over CA$2.6 M; MAG Silver, $48.16 M; Kootenay Silver, $4 M; Gainey Capital, $717.8 K (for a total of $1.96 M). ON RESOURCES AND DEVELOPMENT: Mexican Gold Corp released high grade results from four step out holes at its Las Minas property in Veracruz. Consolidated Zinc is modifying its plans to mill over 250 K tonnes per annum at its Plomosas property in Chihuahua. Silver Bull released high-grade Ag-Cu drill results from drilling the sulfide zone at its Sierra Mojada property in Coahuila. Oceanus disclosed high-grade results from the first hole on its new drill campaign at El Tigre, in Sonora.  ON DEALS AND CORPORATE ISSUES: Argonaut Gold is to acquire the Cerro del Gallo property in Guanajuato, from Primero mining, for US$15 M, including VAT.

ON MEXICO ISSUES

  • PROFEPA (Mexico’s environmental enforcement agency) temporarily suspended operations at the Vetagrande mill in Zacatecas, citing inadequate atmospheric emission controls. Santacruz Silver Mining Ltd. failed to present an environmental permit, equipment maintenance registers or an inventory of atmospheric emissions. Primero Mining received VAT refunds from the SAT (Servicio de Administracion Tributaria) of $4.6 M during Q3, and $10.6 M during October.

ON EXPLORATION

  • Alset Minerals Corp. staked and filed mineral claims for over 400 K hectares of prospective lithium-rich salars in Coahuila. The claims contain the dry lagoons of Mayran (one of the biggest dry lakes in Mexico), Viesca and Los Remedios, in an area of 150 km (N-S) by 125 km (E-W). At Viesca there is history of commercial brine extraction by Sulfatos de Viesca.
  • Aztec Minerals Corp. along with partner Kootenay Silver Inc. announced that phase one of the drilling program is underway at its Cervantes project in Sonora. The program consists of 3,000 m on 14 to 17 holes to test: 1) A gold anomaly in soil and rock chip surveys 600 m by 900 m over quartz-feldspar porphyry and intrusive breccias at the California prospect. 2) Au-Cu mineralization on the Jasper target. 3) A geophysical chargeability/resistivity anomaly.
  • Colibri Resource Corp. is changing the mineralization model at its El Pilar project in Sonora. The mineralization is hosted in andesites along the contact with a granodiorite, but recent drilling confirmed that a supposed strike slip fault is not present, increasing the potential for gold carrying pyrite rich zones associated to two structures in the andesites. New drill targets have been defined, with chargeability anomalies also to be tested.
  • Silver Spruce Resources Inc. has restarted the permitting process for initiating a drill program at its Pino de Plata project in Chihuahua. Drill companies have visited the 397 hectares property and are to submit bids on the drilling program that is to test three zones. The El Terrero target consists of disseminated epithermal mineralization in intrusive rocks, with grab samples of up to 557 g/t Ag. The Teodora vein targets have verification samples with up to 553 g/t Ag. The Santa Elena target area shows replacement Ag-Pb-Zn-Cu mineralization.
  • Endeavour Silver Corp. discovered additional potential bulk tonnage silver mineralization in the Palmilla area of its Parral project in Chihuahua. “ Endeavour drilling has outlined lower grade, bulk tonnage mineralization above and along strike of the old workings that may be amenable to open pit mining”. The true width mineralized intervals averaged 10.1 m @ 92 g/t Ag, 0.2% Pb, 0.4% Zn (Each mineralized interval on one of the Capuzaya, Palmilla and La Luz veins). Endeavour has already an historic resource at the Veta Colorada vein, and is continuing with drilling at the San Patricio vein. A new resource for the Parral property is to be released by Q1, 2018.
  • Santana Minerals Ltd. disclosed a review of historic data that shows high-grade silver mineralization in the La Lupita prospect, part of its Cuitaboca project in Sinaloa. Of a total of 24 samples collected by Peñoles in a 130 m long stretch, nine returned values between 200 g/t Ag and 786 g/t Ag, with an average (on the 24 samples) of 220 g/t Ag, 0.3 g/t Au. Previously reported saw channel sampling by Santana on the same zone returned 7 m @ 161 g/t Ag, 1.1 m @ 158 g/t Ag, 2.9 m @ 281 g/t Ag, 1.65 m @ 514 g/t Ag.

ON MINING

  • Vangold Mining Corp. started a grading and sampling campaign on the surface 200 K stockpile at its Pinguico property in Guanajuato. The company also intends to clean the underground workings in order to access and sample the mine back fill, which they estimate to have the potential to reach 500 K tonnes. The back fill comprises material that did not reach the 15 g/t Au cut off that was being mined in 1913. Both above ground and underground material is to be tested metallurgicaly to define processing methods.
  • Mag Silver Corp. released its third quarter 2017 financial results. During the quarter underground development has been intensified to allow for a planned increase to 4,000 tpd in mining rate, permitting is in process for the planned production increase, and a 20,000 m exploration drill program commenced in July, with three rigs on the surface and one underground. An independent feasibility study (FS) is due by early 2018. The company had $121.6 M in cash and cash equivalents at the end of the period. A new expanded resource estimate was presented on November 7, 2017.
  • Telson Resources Inc. delivered the first zinc concentrates produced at its Campo Morado mine in Guerrero, to Trafigura’s warehouse in Manzanillo, Colima. Up to the first week of November, Telson has produced more than 800 tonnes of zinc concentrate and more than 250 tonnes of lead concentrate.
  • Leagold Mining Corp. reported Q3 2017 production from Los Filos in Guerrero. During the quarter 7,6 M tonnes were moved and 2.1 M tonnes of ore mined @ 0.67 g/t Au, 98 K tonnes were mined from underground @ 7.43 g/t Au, with a recovery rate of 70% (estimated at 80% from underground material) to produce 47,766 Oz Au at an all-sustaining cost (AISC) of $993. An expanded resource estimate for the Bermejal underground deposit was released, and 38,581 m of a 56,000 m drilling campaign were also completed. The company held $52.9 M of cash and cash equivalents at the end of the period.
  • Primero Mining Corp. reported operating and financial results for the third quarter 2017. At San Dimas in Durango, 110.2 K tonnes were mined and 114.7 K tonnes milled (1,246 tpd) @ 4.78 g/t Au, 301 g/t Ag, recovering 97% Au, 94% Ag, to produce 17,070 Oz Au, 1.1 M Oz Ag (or 20,537 Oz AuEq), at cash cost $884 AuEq and AISC of $1,117 per ounce. Production at San Dimas was affected by persistent issues with underground equipment reliability which impacted development and stoping, and a strike by unionized workers over the negotiation of the 2016 annual workers’ bonus. Cash at end of period was $14,9 M, which increased to $22 M by the end of October.
  • Starcore International Mines Ltd. announced production results for the second quarter of fiscal 2018, ended on October 31st, 2017. During the quarter 69.7 K tonnes were milled @ 1.56 g/t Au, 13.6 g/t Ag, recovering 80.9% Au and 54% Ag, to produce 2,739 AuEq Oz. the Altiplano Facility received 137.2 K tonnes of concentrate and 311 Kg of precipitates containing 197 Oz Au, 13,650 Oz Ag. Also during the quarter 94 Oz Au and 20.3 K Oz Ag were sold.
  • Santacruz Silver Mining Ltd. reported that the Mexican Environmental Protection Agency (PROFEPA) requested that the subsidiary operating the Veta Grande mill hold the environmental license directly on its name. The documents were submitted on November 8th, and the company expects the imminent resumption of operations at the mill. The mining operations and mill maintenance have continued through this time period.

ON FINANCING

  • VVC Exploration Corp. issued last week shares and warrants for CA$1.4 M, pursuant to the first closing, shares and warrants were issued for gross proceeds of CA$1.26 M. Insiders of the company subscribed for an aggregate of CA$200 K (Samalayuca, Chihuahua).
  • MAG Silver Corp. announced a non-brokered private placement with some shareholders for up to $44 M in gross proceeds. Later on the week MAG informed that the offering was increased for total gross proceeds of $ $48.16 M. MAG intends to use the net proceeds of the offering to fund exploration and development of the Juanicipio Project, in Zacatecas, and for working capital and general corporate purposes (Juanicipio, Zacatecas).
  • Kootenay Silver Inc. announced the opening of a non-brokered private placement of up to $4 M (La Cigarra, Chihuahua).
  • Gainey Capital Corp. closed the second and final tranche of its previously announced private placement, for gross proceeds of $ 717.8 K. Total gross proceeds for the offering are $1.96 M (El Colomo, Nayarit).
  • Mexican Gold Corp. informed its largest share holder, Palisade Global Investments Ltd. exercised warrants for gross proceeds of $833 K (Las Minas, Veracruz).

ON RESOURCES AND DEVELOPMENT

  • Mexican Gold Corp. released results from four step-out holes at its Las Minas project in Veracruz. The highlighted intervals include: 54.0 m @ 3.9 g/t Au, 13 g/t Ag, 1.7% Cu (including 38 m @ 5.4 g/t Au, 17 g/t Ag, 2.2% Cu); 19.0 m @ 2.1 g/t Au, 0.2% Cu (including 5.0 m @ 4.6 g/t Au, 0.4% Cu); 21.35 m @ 1.3 g/t Au, 0.7% Cu (including 11.35 m @ 2.2 g/t Au, 1.0% Cu) in one hole, and 9.0 m @ 0.9 g/t Au, 11 g/t Ag, 1.4% Cu; 8.0 m @ 1.3 g/t Au, 0.4% Cu; 12.80 m @ 0.8 g/t Au, 8 g/t Ag, 1.2% Cu. The drilling increased the strike width of the initial resource to 365 m (a 65 m increase) by 395 m. The rig is back to this zone to commence infill and resource expansion drilling near the drill intercept outlined above.
  • Consolidated Zinc Ltd. is expanding the plans outlined in the recent scoping study on its Plomosas property in Chihuahua. The company is now evaluating the opportunity targeting over 250 K tonnes per annum over a mine life of 7 to 10 years.
  • Silver Bull Resources Inc. released results from the sulfide zone at its Sierra Mojada property in Coahuila. Highlighted drill intercepts comprise: 16 m @ 396 g/t Ag, 1.6% Cu (including 5 m @ 379 g/t Ag, 3.2% Cu; 6 m @ 610 g/t Ag, 1.1% Cu); 7 m @ 370 g/t Ag, 0.8% Cu; 4.8 m @ 352 g/t Ag, 0.6% Cu. The sulfide zone sits below the current Sierra Mojada’s oxide resource, along a steeply dipping fault, remaining open to depth and over 3 km along strike.
  • Oceanus Resources Corp. reported results from the first hole of the current drill campaign in the Caleigh vein at its El Tigre property in Sonora. The hole returned 0.75 m @ 10.9 g/t Au, 2,830 g/t Ag, encountering also the low grade hanging wall alteration zone adjacent to the vein, with 25.75 m @ 0.65 g/t Au, 92 g/t Ag. “The true width has not been calculated for the intercepts, however true width is generally estimated at 75% to 90% of drilled width.”

ON DEALS AND CORPORATE ISSUES

  • Argonaut Gold Inc. reached an agreement with Primero Mining Corp. regarding the acquisition of the Cerro del Gallo project in Guanajuato. Under the deal Argonaut is to purchase all the shares of the Primero Mining subsidiary that holds the property for a cash consideration of $15 M (including VAT), payable on closing.

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.

On the picture below, beautifully banded epithermal quartz vein from a prospect on the Durango Altiplano. Photo by Jorge Cirett.

059 - copia

Highlights on the Fourth Week of October, 2017. Mineral Exploration in Mexico

/ Gambusino Prospector / Leave a comment

During the 43rd week of the year (October 23rd to October 29th, 2017), at least 30 press releases were announced by companies working in Mexico, including five quarterly reports. ON MEXICO ISSUES: Almost 70% of the silver production in Mexico comes from Zacatecas, Durango and Chihuahua. ON EXPLORATION: eight companies disclosed exploration efforts during the week: In Sonora Azure updated work on Oposura, Sara Alicia and Alacrán projects; SilverCrest released high-grade assays from sampling rehabilitated workings on Las Chispas. In Chihuahua Endeavour confirmed high–grade silver mineralization within an historical resource at Veta Colorada; Golden Minerals released high-grade intercepts from at its Santa Maria property; Mammoth Resources plans to commence a drill program at its Tenoriba property. In Sinaloa, Auxico provided sampling results from a trench at its Zamora project. In Zacatecas Defiance Silver provided results from drilling at San Acacio. In Oaxaca, Gold Resource disclosed drill results from Altagracia.  ON MINING: Agnico Eagle, New Gold, Coeur Mining, Goldcorp and Capstone reported third quarter results. In Chihuahua Sierra Metals announced increased recoveries from its mills at Cusi and Bolivar; Consolidated Zinc presented a Scoping Study on its Plomosas property. In Durango, Argonaut reached commercial production at San Agustin. In Guerrero, Telson reached 1,400 tpd processing at Campo Morado; Alio Gold presented drilling results of two confirmation holes at Ana Paula, and granted the development contract for the 1,200 m decline. ON FINANCING: Azure is proposing a 20 to 1 share consolidation program. ON RESOURCES AND DEVELOPMENT: Bacanora presented its yearly report. Goldcorp announced an update on mineral reserves and resources. Agnico informed that 16,800 m of drilling were performed during the last quarter at its El Barqueño property in Jalisco. Oceanus filed at SEDAR the technical report on the new resource estimate on El Tigre property in Sonora. ON DEALS AND CORPORATE ISSUES: Alamos Gold and Richmont Mines have been granted an interim order from the Quebec Superior Court. Canuc Resources acquired an important concession on its San Javier project in Sonora. Colibri Resources is to retain the investor relations contractor and marketing services on a deal involving a cash payment and shares. Minera Alamos and Vista Gold entered into an acquisition agreement on Vista’s Guadalupe de Los Reyes project in Sinaloa.

ON MEXICO ISSUES

  • On Mexican Silver Production, Zacatecas has 40.8% participation, Durango 14.0% and Chihuahua 13.9%. Located in Zacatecas the Saucito mine is the largest primary silver producer in the world, generating 13% of the Mexican production. Silver production in Zacatecas decreased 11.5% in 2016, due mainly to lower grades at Peñasquito. In Durango, production decreased 23.7% by work interruptions at San Dimas and lesser output from Guanaceví. Construction of the La Preciosa (Durango), Pitarrilla (Durango), El Gallo II (Sinaloa), Cordero (Chihuahua) and Cerro del Gallo (Guanajuato) projects still await better market conditions to go ahead.

ON EXPLORATION

  • Endeavour Silver Corp. informed that drilling has confirmed high grade silver mineralization within the Argentina-Remedios area of the Veta Colorada project. IMMSA operated the Veta Colorada mine until 1990, and left a 32.1 M Oz Ag historical resource contained in 4.0 M tonnes @ 248 g/t Ag. “Twenty-one drill holes totaling 6,928 metres (m) of core were drilled to test the portion of the historic resource located within the Argentina-Remedios area of the Veta Colorada…. The drill holes were spaced at approximately 100 m centres over an area 400 m long by 400 m deep”. True width intercepts highlighted contain 2.2 m @ 213 g/t Ag; 3.0 m @ 1,562 g/t Ag (including 0.5 m @ 8,070 g/t Ag); 2.3 m @ 248 g/t Ag; 9.3 m @ 457 g/t Ag; 7.0 m @ 344 g/t Ag;   2.3 m @ 4,641 g/t Ag (including 0.6 m @ 13,117 g/t Ag); 7.5 m @ 448 g/t Ag; 1.5 m @ 230 g/t Ag; 4.6 m @ 521 g/t Ag; 6.4 m @ 239 g/t Ag; 1.1 m @ 200 g/t Ag; 1.0 m @ 230 g/t Ag. A new resource estimate is to be released on the first quarter of 2018.
  • Auxico Resources Canada Inc. provided sampling results from a single trench on the Aguamas zone of its Zamora project in Sinaloa. The trench returned 50 m @ 0.85 g/t Au, including 3 m @ 13.07 g/t Au. The trench is within 100 m of the Aguamas mine historical workings, where recent sampling returned 14.9 g/t Au, 192 g/t Ag; 34.0 g/t Au, 98 g/t Ag. On these workings a series of quartz veins at multiple angles cut a silicified volcanic breccia.
  • Golden Minerals Co. released high-grade intercepts from the first six holes of a drill campaign on its Santa Maria property in Chihuahua. Intercepts include true width results of 1.06 m @ 604 g/t Ag, 0.84 g/t Au, 0.2% Pb, 0.1% Zn; 0.80 m @ 255 g/t Ag, 0.77 g/t Au, 1.6% Pb, 1.5% Zn; 2.50 m @ 431 g/t Ag, 0.29 g/t Au, 0.5% Pb, 1.0% Zn; 2.50 m @ 217 g/t Ag, 0.49 g/t Au, 0.6% Pb, 0.2% Zn; 0.40 m @ 164 g/t Ag, 0.40 g/t Au, 0.6% Pb, 3.8% Zn; 2.36 m @ 310 g/t Ag, 0.77 g/t Au, 0.4% Pb, 0.9% Zn. These holes potentially extend the strike dimension of the vein resource 110 m to the east, with the remaining drill holes to test an additional 250 m on the same direction.
  • Defiance Silver Corp. provided results from its phase 1 drill program at its San Acacio project in Zacatecas. Highlighted intercept results: 17.0 m @ 110 g/t Ag, 0.13 g/t Au, 0.1% Pb, 0.3% Zn (including 8.1 m @ 222 g/t Ag, 0.22 g/t Au 0.2% Pb, 0.5% Zn); 16.7 m @ 101 g/t Ag, 0.75 g/t Au, 0.1% Pb, 1.8% Zn (including 3.2 m @ 419 g/t Ag, 0.82 g/t Au, 0.1% Pb 0.3% Zn); 6.1 m @ 138 g/t Ag, 0.80 g/t Au, 0.2% Cu, 1.3% Pb, 1.9% Zn; 3.6 m @ 211 g/t Ag, 0.14 g/t Au, 0.1% Pb, 0.2% Zn; 7.4 m @ 159 g/t Ag, 0.52 g/t Au, 0.8% Pb, 1.8% Zn; 7.25 m @ 631 g/t Ag, 0.43 g/t Au, 0.1% Pb, 0.2% Zn; 0.7 m @ 432 g/t Ag, 0.24 g/t Au, 0.2% Pb, 0.6% Zn; 0.75 m @ 331 g/t Ag, 0.10 g/t Au, 0.1% Pb, 0.3% Zn; 2.1 m @ 283 g/t Ag, 0.17 g/t Au, 0.4% Pb, 0.7% Zn; 0 m @ 231 g/t Ag, 0.51 g/t Au, 0.4% Pb, 1.7% Zn; 3.0 m @ 372 g/t Ag, 0.10 g/t Au, 0.2% Pb, 0.4% Zn. The Veta Grande system pinch and swells along strike, with 4.4 km of the 5.6 km Defiance holdings having not seen production or modern exploration in a vein system that has produced close to 200 M Oz Ag.
  • Gold Resource Corp. disclosed drill hole results from the Alta Gracia drill program in Oaxaca. Alta Gracia hosts the Mirador mine, being 16 km NW from Gold Resource’s El Aguila project. This drill program tested four vein structures that do outcrop at the surface. Highlighted drill results: 0.23 m @ 5.17 g/t Au, 2,990 g/t Ag; 1.06 m @ 1.36 g/t Au, 453 g/t Ag; 1.47 m @ 2.29 g/t Au, 708 g/t Ag; 3.83 m @ 1.13 g/t Au, 194 g/t Ag; 0.98 m @ 0.69 g/t Au, 1,030 g/t Ag; 1.29 m @ 4.33 g/t Au, 1,710 g/t Ag; 1.72 m @ 1.40 g/t Au, 820 g/t Ag; 0.77 m @ 1.13 g/t Au, 690 g/t Ag.
  • Azure Minerals Ltd. announced its quarterly activity report. Oposura in Sonora was acquired, with drill results confirming the potential to host a high grade Zn-Pb-Ag deposit and a 7,000 m resource definition drill program in progress with two drill rigs currently in the property. The Sara Alicia project was acquired in Sonora, with rock chip sampling returning high grade gold and cobalt grades. An exploration 450 m drilling program is in progress. At Alacrán project, also in Sonora, a 5,000 m drilling campaign undertaken by earn-in partner Teck, commenced with three drill rigs operating, targeting epithermal and porphyry copper mineralisation at Loma Bonita, Cerro San Simon and Cerro Colorado areas.
  • Mammoth Resources Corp. plans to commence a diamond drill program from 8 to 24 holes at its Tenoriba project in Chihuahua. The drill targets were selected on a combination of surface geology, trace element geochemistry, gold bearing samples, PIMA sampling results, ground mag and induced polarization surveys and previous drilling by another company. Petrographic work has showed the mineralization to occur as free gold, and metallurgical testing on core material has shown gold recoveries to attain up to 100% on shallow intervals (dominated by oxides), and recoveries of 65% to 72% on the deeper intervals. To note is that the drill contractor accepted to be paid up to 60% of the cost of the program in shares of Mammoth. Core length mineralized intervals on previous drilling include 39.7 m @ 0.44 g/t Au; 34.4 m @ 1.03 g/t Au; 12.0 m @ 0.64 g/t Au.
  • SilverCrest Metals Inc. released additional underground channel sample results from its Las Chispas project in Sonora, where the company is currently exploring nine of the nineteen known veins. The channel sampling in the newly rehabilitated historic underground workings on Las Chispas vein, defining continuous unmined areas with bonanza grades. Composited intervals include an average of 2.9 m @ 5.8 g/t Au, 1,024 g/t Ag over 20 m of length; 3.0 m @ 2.2 g/t Au, 286 g/t Ag over 50 m of length; 3.0 m @ 4.0 g/t Au, 551 g/t Ag over 20 m of length; 5.0 m @ 1.8 g/t Au, 246 g/t Ag over 40 m of length; 4.9 m @ 4.9 g/t Au, 632 g/t Ag over 35.5 m of length. Individual samples as high as 1.1 m @ 15.8 g/t Au, 1,860 g/t Ag; 1.0 m @ 20.6 g/t Au, 2,082 g/t Ag; 0.8 m @ 31.7 g/t Au, 4,390 g/t Ag; 0.8 m @ 28.0 g/t Au, 2,930 g/t Ag are included in those intervals. So far SilverCrest has drilled 35,000 m in 141 holes in the project.

ON MINING

  • Telson Resources Inc. initiated ore processing at Campo Morado in Guerrero, at an approximate rate of 1,400 tonnes per day (tpd). “The first two years of production are planned to be mined from the G9 and El Largo ore bodies in areas of elevated gold and silver values within polymetallic base metal zones having average grades of 1.8 g gold/t, 142.7 g silver/t, 3.99% zinc, 0.62% copper and 1.07% lead”. Metallurgy tests have resulted in new processes added, including the removing of carbon organic matter and new types of reagents. The plan is to increase the production rate to the mill’s capacity of 2,500 tpd over the next six to twelve months.
  • Alio Gold Inc. released results from the first two confirmation holes on its Ana Paula project in Guerrero. The 2,000 m drill program is to twin 11 holes to confirm previous drilling and to obtain samples for metallurgical testing. The holes intercepted 99.4 m @ 10.8 g/t Au; 74.0 m @ 6.2 g/t Au.
  • Argonaut Gold Inc. announced commencement of commercial production on October 1, 2017, on its San Agustin mine in Durango. The project was delivered on schedule and more than 20% under budget, on the initial capital estimate of $43 M.
  • Sierra Metals Inc. informed an increase on recoveries from its mills in Mexico, to an average level of 82% at its Piedras Verdes mill in the Bolivar mine and to 83% at its Malpaso mill in the Cusi mine, both in Chihuahua. Production at Bolivar is expected to reach 3,000 tonnes per day (tpd) in Q1 2018 through the commissioning of 13 new pieces of equipment. At Cusi, the focus in on completing access, development and production of the Santa Rosa de Lima zone, with wider structures and grades than the narrow veins being mined now. Currently selected higher grade material from the old mine and development ore from Santa Rosa de Lima is being sent to the mill. Tonnage from the Santa Rosa de Lima structure is to be gradually increased until the mill operates at its 650 tpd capacity. A geological reinterpretation led to the discovery of the Santa Rosa de Lima zone, which averages 3.8m @ 372 g/t AgEq after two drill campaigns totaling 29,500 m. (Note of compiler.- There are two very informative graphics on how the metallurgical recoveries were improved within the press release).
  • Agnico Eagle Mines Ltd. reported third quarter 2017 results, including figures from its Mexican operations, on which 15.9 M were spent in sustaining capital and 2.0 M in development. At Pinos altos in Chihuahua, 587 K tonnes were processed at a rate of 6,380 tpd @ 2.65 g/t Au, and total cash cost of $376 K per Oz Au. Exploration focused at the Madroño zone, immediately SE from the Creston Mascota pit. Selected results: 15.8 m @ 4.3 g/t Au, 23 g/t Ag (including 4.2 m @ 10.6 g/t Au, 55 g/t Ag); 6.7 m @ 1.0 g/t Au, 11 g/t Ag; 11.3 m @ 1.7 g/t Au, 11 g/t Ag; 9.8 m @ 1.0 g/t Au, 14 g/t Ag; 10.9 m @ 0.9 g/t Au, 12 g/t Ag; 5.8 m @ 3.0 g/t Au; 16.5 m @ 5.8 g/t Au, 68 g/t Ag; 22 m @ 1.3 g/t Au, 24 g/t Ag. At La India in Sonora, 1.54 M tonnes were processed at a rate of 16,762 tpd @ 0.69 g/t Au and total cash cost per Au ounce of $657. Drilling is ongoing at the Main Zone, El Realito, Cerro del Oro and El Cochi zones. Promising results from ongoing exploration have led to the search of location options to construct additional pad capacity.
  • New Gold Inc. released third quarter 2017 results, which includes the production of 7,951 Oz Au, 0.1 M Oz Ag from the residual leaching of the closed San Pedro mine in San Luis Potosi, at an All-in sustaining cost of $1,532 per Au Oz.
  • Coeur Mining Inc. reported third quarter 2017 results, including figures from its Palmarejo mine in Chihuahua, where 413.1 K tonnes @ 172 g/t Ag, 2.49 g/t Au were milled. Average recoveries were 83.6% for Ag and 83.1% for Au to produce 1.91 M Oz Ag, 28,948 Oz Au. Production reached the end of year target of 4,500 tpd during the period. As many as nine rigs were operating at Palmarejo, focused on resource expansion at the Nación–Dana deposit.
  • Alio gold Inc. has awarded the contract for developing the underground decline at the Ana Paula project JDS Energy and Mining to manage the contract and underground mining operation. The 1,200 m decline is expected to take seven months to complete, at a rate of 5-7 m per day, and cost of approximately $10 M. A definitive feasibility study (DFS) is currently under way, and expected to be completed in the second quarter of 2018.
  • Goldcorp Inc. presented the third quarter report for 2017, without including figures by project. The company produced 633 k Oz Au at an AISC of $827 per gold ounce.
  • Capstone Mining Corp. announced third quarter financial results, including figures from its Cozamin operation in Zacatecas, where 4,242 tonnes of copper were produced during the period, at all-in cost of $1.86 per Lb Cu. The signing of an agreement that provides access to Capstone to the lower depths of the adjoining Endeavour Silver claim to the south is providing access to a zone with higher grades and greater widths, some 580 m away from the current indicated resource of the Mala Noche Footwall Zone.
  • Consolidated Zinc Ltd. completed the Scoping Study on its Plomosas property in Chihuahua with positive results at a base case level. The study focused on mining the Tres Amigos resource (544 K tonnes @ 11.2% Zn, 2.1% Pb, 14 g/t Ag) on level 5 using existing infrastructure. Contractor mining is to be used with a cut and fill method on mineralization on which 90% to 95% Zn and up to 70% Pb recoveries have been achieved, to produce a concentrate free of penalized elements. The process is to include crushing, grinding, bulk flotation roughing and cleaning stages to produce a concentrate.

ON FINANCING

  • Azure minerals Ltd. has proposed a 20 to 1 consolidation, reducing the current shares on issue from 1.67 billion to 83.6 million. Shareholder approval is to be sought at the AGM on 20 November 2017. Cash balance at quarter end is $5.9 M (Oposura and Sara Alicia, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Bacanora Minerals Ltd. presented its annual financial results for the year ended on 30 June 2017. During the period Bacanora secured a strategic partnership with Hanwa Co. Ltd.; a feasibility study (FS) is to be completed in Q4 2017; lithium carbonate has been produced at the Pilot Plant since May 2016, enabling optimization of the beneficiation process; 4,000 m of infill drilling was completed to upgrade resources; acquired 50% interest on the Zinnwald Lithium project in Germany.
  • Goldcorp Inc. presented an update on its mineral reserve and mineral resource estimates to the end of June 2017, including figures from its Mexican operations. At Peñasquito in Zacatecas, proven and probable gold mineral reserves totaled 9.0 M Oz Au, compared with 10.0 M Oz Au in 2016. Mine depletion accounted for 0.7 M Oz Au, while higher input costs and updated metallurgical recoveries led to a change in cut-off grade, resulting in the reclassification of 0.4 M Oz Au into the measured and indicated mineral resource category. 0.22 M Oz Au stand in the inferred category. Reserves also include 545.6 M Oz Ag, 3,684 M Lb Pb, 8,927 M Lb Zn; Measured and Indicated resources (M&I) of 5 M Oz Ag, 1,270 M Lb Pb, 2,858 M Lb Zn; Inferred resources of 14.2 M Oz Ag, 85 M Lb Pb, 307 M Lb Zn.
  • Agnico Eagle Mines Ltd. reported approximately 16,800 m of drilling at El Barqueño, in Jalisco, during the last quarter. The focus has been on extending known deposits and testing other areas as Tecolote, El Rayo and Camino. Drilling has now extended the mineral resources over one km to the W of the Azteca-Zapoteca zone. Six rigs are operating on El Rayo, Cuauhtemoc, Pilarica, Zateca-Zapoteca and Socorro. Agnico believes in the potential to develop a series of open pits utilizing heap leach and/or mill processing similar to its Pinos Altos mine in Chihuahua.
  • Oceanus Resources Corp. has filed a 43-101 compliant Technical Report disclosing the mineral resource estimate announced in September on its El Tigre property in Sonora. The resource includes two open pit and two underground operations at the El Tigre and Fundadora veins. The total hard rock resource is 25.9 M tonnes @ 0.52 g/t Au, 19 g/t Ag, containing 436 K Oz Au, 15.7 M Oz Ag and 6.6 M tonnes @ 0.52 g/t Au, 89 g/t Ag as indicated and inferred resources respectively. The tailings resource is 939 K tonnes @ 0.27 g/t Au, 78 g/t Ag, containing 8 K Oz Au, 2.3 M Oz Ag and 1 K Oz Au, 254 K Oz Ag, as indicated and inferred resources respectively.

ON DEALS AND CORPORATE ISSUES

  • Alamos Gold Inc. and Richmont Mines Inc. have been granted an interim order from the Quebec Superior Court (Commercial Division) authorizing various matters, including the holding of special meetings of Alamos and Richmont shareholders to consider the proposed plan of arrangement whereby Alamos will acquire all of the issued and outstanding shares of Richmont, and the mailing of the joint information circular.
  • Canuc Resources Corp. entered into a definitive agreement to acquire the Carobens 151 hectares concession from Minerales y Carbones de Mexico S.A. de C.V. by issuing 150 K common shares (valued at US$50 K) and US$50 K in cash. “The newly acquired mining concession envelops existing land holdings to the northeast. Early exploration has determined that silver-gold mineralization strengthens to the northeast.”
  • Colibri Resources Corp. announced the retention of FronTier Consulting Ltd. to provide investor relations and marketing services. Under the 12-month period Colibri is to pay $110 K plus out-of-pocket-expenses, and grant 150 K stock options at an exercise price of $0.15. FronTier and its related companies currently own 1.34 M share purchase warrants of Colibri.
  • Minera Alamos Inc. entered into an option agreement with Vista Gold Corp. to acquire Vista’s subsidiary Minera Gold Stake S.A. de C.V., which owns the Guadalupe de Los Reyes project in Sinaloa. Guadalupe de Los Reyes has an indicated resource of 380 K Oz Au and 155 K Oz Au of inferred resources. The agreement includes US$6 M in staged payments: US$1.5 M on closing, US$1.5 M on each of the 12 and 24 month anniversary and a final purchase price of US$1.5 M on or before the 48 anniversary. A minimum 1% NSR will apply to gold production from a heap leach open pit, which could increase to 2% if gold prices exceed US$1,600 per ounce. The royalty is capped at a cumulative amount of US$2 M. Vista Gold retains the right to acquire a 49% non-carried interest in the development of underground gold resources, if Vista’s interest is diluted below 10% interest, an NSR like the one used to open pit mining is to apply.

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.

Collage2

On the picture above, collage of mineralized rock fragments from a prospect on the Durango Altiplano. Photo by Jorge Cirett.

Highlights on the First Week of October, 2017. Mineral Exploration in Mexico

/ Gambusino Prospector / Leave a comment

During the 40th week of the year (October 2nd to October 8th, 2017), at least 25 press releases were announced by companies working in Mexico, including two quarterly reports. ON MEXICO ISSUES: a blockade to Goldcorp’s Peñasquito mine entrance in Zacatecas was lifted by assembling a government sponsored round table to assess protesters arguments. ON EXPLORATION: Activity seems to be gaining pace, with ten companies presenting press releases on their properties. In Sonora, Silver Viper has commenced the first drilling campaign on its Clemente project; Aztec Minerals disclosed interesting Au-Cu values from trenches at its Cervantes project; Canuc Resources released drilling results from its San Javier property. In Chihuahua, Sierra Metals informed on thick high-grade intercepts from drill testing deep geophysical targets at its Bolivar mine; Radius Gold disclosed initial rock chip sampling from its Los Tarros property; Harvest Gold announced exploration results on the Cascaritas prospect within its Cerro Cascaron project. In Sinaloa, Santana Minerals released metallurgical results from its Cuitaboca property. In Zacatecas and San Luis Potosi Alset Minerals released lithium and potassium results from auger drilling on 13 additional salars. In Veracruz Almadex Minerals disclosed good assay results on a long interval of its last hole at El Cobre; Mexican Gold informed that the first hole of a new drill campaign at its Las Minas property intersected two mineralized intervals containing chalcopyrite and bornite. ON MINING: Telson announced that mill clean up and refurbishment is nearing completion at its Campo Morado mine in Guerrero. US Antimony is to increase production at three of its four mines in Mexico. Americas Silver produced its first lead and zinc concentrates from the San Rafael mine in Sinaloa. Alio Gold and Coeur Mining presented third quarter 2017 reports.  ON FINANCING: Southern Silver closed the final tranche of its private placement, raising $502 K; Azure Minerals is to seek shareholder approval to share consolidation. ON RESOURCES AND DEVELOPMENT: Candelaria Mining retracted the environmental permit on its Caballo Blanco project in Veracruz.  Kootenay Silver announced assay results from drilling by partner Pan American Silver on its La Negra prospect in Sonora. ON DEALS AND CORPORATE ISSUES: Magellan Resources announced that its purchase of the SDA mill in Nayarit remains on track to completion. Radius Gold signed a binding agreement with a private Mexican company on Los Tarros property in Chihuahua. Prospero Silver received authorization from the TSX on a related third party agreement.

ON MEXICO ISSUES

  • Goldcorp suffered entrance blockades at Peñasquito, in Zacatecas. For a week the entrance to the Peñasquito mine in Zacatecas was blocked by protesters. The blockade was terminated by the establishment, aided by the federal government, of a round table to discuss the protesters grievances. The table is to be leaded by the Zacatecas State government.

ON EXPLORATION

  • Silver Viper Minerals Corp. has mobilized a drill rig to its Clemente project in Sonora. The drill program envisages 2,000 m of diamond core drilling, focusing on the El Mundo and Nuevo Mundo areas, where Ag-Au-base metals mineralization is hosted by quartz shear veins, quartz stockworks and hematitic vein breccias. The best sample to date is from the El Mundo area is 0.5 m wide @ 1,895 g/t Ag, 4.46 g/t Au, 1.9% Pb, 1.6% Zn. The environmental permit for drilling has been approved, with land and access permit agreements in place.
  • Kootenay Silver Inc. reported that Aztec Minerals Corp. disclosed attractive sampling results from trenching in the Jasper prospect at the Cervantes property in Sonora (which is under option from the former by the latter). The new manual trenching connected two previous trenches, extending Cu-Au-Mo mineralization for 92.3 m @ 0.52% Cu, 0.62 g/t Au, 76 ppm Mo, staying open in both directions. The rock is highly leached quartz feldspar porphyry with chrysocolla and neotocite as oxide copper minerals. A 50 by 50 m soil grid was completed over the Jasper project.
  • Alset Minerals Corp. released results from auger sampling on 13 additional salars in Zacatecas and San Luis Potosi. “Of the 13 salars sampled, 9 had average lithium grades exceeding 200 ppm, with 4 salars averaging lithium grades of around 400 ppm and higher…”. Dry lake sediment samples were collected using a hand-held motorized auger, or a hammer and hollow-tube sampling method, and assaying the material collected between 0.5 and 1.0 m of depth. The Caliguey salar averaged 769 ppm Li and 3.4% K; the Hernandez salar averaged 556 ppm Li, 1.6% K; the Chapala salar averaged 416 ppm Li, 1.2% K.
  • Almadex Minerals Ltd. disclosed assays for the last hole at the Norte area of its El Cobre property in Veracruz. Noteworthy intervals comprise 481.65 m @ 0.67 g/t Au, 0.27% Cu, including 187.25 m @ 1.02 g/t Au, 0.33% Cu (from 354.00 to 541.25 m). The hole was drilled to test for continuity of mineralization between two other holes within the area.
  • Sierra Metals Inc. informed that the first four holes to test 22 high priority targets identified with the recently completed Titan 24 geophysical survey intersected wide high-grade copper bodies in three different zones with no previously known mineralization. The intercepts include 25.3 m @ 0.38 g/t Au, 31 g/t Ag, 1.55% Cu, 1.95% Zn; 28.65 m @ 0.34 g/t Au, 34 g/t Ag, 1.97% Cu, 0.91% Zn; 13.05 m @ 1.79 g/t Au, 37 g/t Ag, 2.05% Cu; 33.4 m @ 0.10 g/t Au, 32 g/t Ag, 1.04% Cu, 0.20% Zn. The four intercepts are deep seated, between 340 m and 492.90 m in the core, along length (Note of compiler.- This seems a significant discovery).
  • Canuc Resources Corp. announced that the third hole at its San Javier project in Sonora intersected the Santa Rosa vein in two splays, the first with 0.37 m @ 156 g/t Ag, 0.39 g/t Au, 1.0% Pb, 5.6% Zn, and the second with 1.48 m @ 1,514 g/t Ag, 2.91 g/t Au, 4.2% Pb, 5.6% Zn. Canuc has concluded the agreement to acquire the Tule 1 concession, which envelops the property to the NE, adding considerable strike length to the Santa Rosa vein. In the NE land package is the Carranza breccia zone, with 11 m @ 274 g/t Ag on the surface, and the Cerro Colorado breccia zone, with 11.3 m @ 285 g/t Ag.
  • Radius Gold Inc. has signed a binding agreement with a private Mexican company to option the 473 has Los Tarros project in Chihuahua. Several breccia bodies occur within a 3.5 km by 1 km area, with the largest breccia exceeding 250 m by 250 m. The volcanic hosted explosive breccias are cemented by silica and iron oxides. The average of 26 samples collected is 1.42 g/t Au, 66 g/t Ag. At the Rosario breccia (>150 m by 60 m) an old pit returned 10 m @ 2.95 g/t Au, 18 g/t Ag, staying open in all directions. Other significant breccia bodies include Regalito, La Bufa (the only one hosted in granodiorite), San Nicolas and San Miguel.
  • Mexican Gold Corp. informed that step-out drilling at its Las Minas property in Veracruz intersected two intervals of chalcopyrite-bornite-magnetite mineralization in the first hole drilled beyond the current western limit of the El Dorado/Juan Bran zone. A 3.0 m interval contains magnetite and an estimated chalcopyrite content of up to 3% by volume. An 8.0 m interval further downhole is a mineralized exoskarn with up to an estimated 5% chalcopyrite by volume, and visible bornite and magnetite. Assays are pending on these core-length intervals.
  • Santana Minerals Ltd. reported good results from initial metallurgical test work on composite samples from three drill holes from the Mojardina prospect at its Cuitaboca project in Sinaloa. A 75 micron, 48 hours, bottle-roll standard carbon in leach test on the three holes returned 93.1%, 95.3%, 98.4% silver recoveries respectively; the rougher flotation test achieved 93.6%, 88.2%, and 86.8% silver respectively.
  • Harvest Gold Corp. identified six silver-rich polymetallic veins at the Cascarita prospect of its Cerro Cascaron Project in Chihuahua. High grade silver with strong Pb and Zn values were sampled in historic adits. The six veins are within a 900 m by 300 m corridor, attain up to 3.3 m in width and display colloform and drusiform quartz textures, as well as local amethyst quartz. Vein textures indicating boiling are preserved at one of the veins, as quartz pseudomorphs after bladed calcite. Results include 1.4 m @ 114 g/t Ag, 5.2% Pb, 1.3% Zn; 2.0 m @ 127 g/t Ag, 8.7% Pb, 0.5% Zn; 2.3 m @ 311 g/t Ag, 1.6% Pb, 0.3% Zn; 2.1 m @ 245 g/t Ag, 6.4% Pb, 0.5% Zn; 3.3 m @ 104 g/t Ag, 2.4% Pb, 0.5% Zn.

ON MINING

  • Telson Resources Inc. announced that mill clean up and refurbishment is nearing completion at its Campo Morado mine in Guerrero. Underground mining is being ramped up, having delivered 25 K tonnes to the coarse ore patio. Ore crushing is operational, putting 5 K tonnes to the crushed ore stockpile. Commercial production at a 1,400 tonnes per day (tpd) is projected to be achieved during October, while production levels to the 2,500 tpd mill capacity is to take 6 to 12 months.
  • United States Antimony Corp. plans to increase production at three of its four mines in Mexico. At Wadley, in San Luis Potosi, the gravity mill will process lower grade ore (not direct shipping ore), which could results in a 25-50% increase in production. At Soyatal in Queretaro, direct shipping ore is to be produced once new powder magazines are built. In Zacatecas a mine road to the Guadalupe mines is to be repaired, allowing mining to be resumed at the Santa Monica mine. The Los Juarez mine in Queretaro is awaiting a permit from SEMARNAT for the cyanide circuit at the Puerto Blanco mill.
  • Americas Silver Corp. announced that the first lead and zinc concentrates produced from its San Rafael project at its Cosalá operation in Sinaloa were produced during the last week of September. Commercial production is expected to be reached before the end of the fourth quarter, when the Nuestra Señora mine is expected to enter in care and maintenance.
  • Alio Gold Inc. released 3rd quarter preliminary production results from its San Francisco mine in Sonora. 1.9 M tonnes of ore @ 0.40 g/t Au and 5.2 M tonnes of waste were moved (3.15 waste to ore strip ratio) to produce 19,429 Oz Au, 8,808 Oz Ag. Production guidance stays on track to produce 88 -90 K Oz Au during 2017.
  • Coeur Mining Inc. disclosed third quarter 2017 production results, including figures from its Mexican operations. At Palmarejo, in Chihuahua, 413.1 K tonnes were milled @ 172 g/t Ag, 2.49 g/t Au, achieving recoveries of 83.6% Ag, 83.1% Au, to produce 1.91 M Oz Ag, 28,948 Oz Au

ON FINANCING

  • Southern Silver Exploration Corp. closed the final tranche of its previously reported private placement, for gross proceeds of $502 K. The three tranches gathered total gross proceeds of $3.58 M (Cerro Las Minitas, Durango).
  • Azure Minerals Ltd. is to seek shareholder approval for consolidation of the issued capital through the conversion of every twenty existing shares into one share.

ON RESOURCES AND DEVELOPMENT

  • Candelaria Mining Corp. decided to retract the environmental permit for the Caballo Blanco project in Veracruz, citing the current political climate and upcoming state and federal elections. “…The postponing of the permit will allow Candelaria to optimize certain aspects of the project and improve upon existing and establish new relationships with our stakeholders. “
  • Kootenay Silver Inc. announced the results of 13 infill drill holes completed by Pan American Silver Corp. on its La Negra property in Sonora. Highlighted intercepts are 34.3 m @ 159 g/t Ag (including 8.2 m @ 306 g/t Ag); 17.1 m @ 192 g/t Ag (including 3.55 m @ 597 g/t Ag); 48.7 m @ 281 g/t Ag (including 1.95 m @ 3,004 g/t Ag, 1.0 m @ 2,146 g/t Ag, 5.35 m @ 558 g/t Ag); 21.0 m @ 274 g/t Ag (including 1.1 m @ 3,018 g/t Ag); 31.8 m @ 403 g/t Ag (including 8.85 m @ 1,098 g/t Ag); 29.25 m @ 138 g/t Ag; 38.7 m @ 289 g/t Ag (including 7.6 m @ 674 g/t Ag); 76.35 m @ 236 g/t Ag; 53.8 m @ 174 g/t Ag (including 12.15 m @ 308 g/t Ag); 5.35 m @ 571 g/t Ag.

ON DEALS AND CORPORATE ISSUES

  • Magellan Gold Corp. announced that its purchase of the SDA mill in Nayarit is on track to be closed by the end of October 2017.
  • Radius Gold Inc. has signed a binding agreement with a private Mexican company to option the 473 has Los Tarros project in Chihuahua. Radius can earn a 100% interest in the project by making an immediate payment of US5 K, and staged payments over four years totaling US$1.68 M, of which US$1.2 M is a final payment at the end of the four year period. A 2% NSR can be bought by Radius for US$1 M for each 1%.
  • Prospero Silver Corp. has received TSX approval of the option to own agreement with Exploraciones Altiplano S.A. de C.V. regarding Altiplano’s Buenavista claims in Durango. The agreement constitutes a “related party transaction” under the TSX policies.

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.

On the picture below, the Peña Colorada mine pit in Colima. Photo by Jorge Cirett.

DSC00863c - copia